Korea’s Hanwha Ocean sends USNS Wally Schirra back to theater after MRO

A 210-meter, 40,000-ton US Navy vessel, heavily corroded and weathered from years of service, was pulled into Hanwha Ocean Co.'s shipyard in Geoje, South Korea, in September last year.

The Wally Schirra, a Lewis and Clark-class dry cargo ship commissioned in 2009 and named after famed US astronaut and Korean War veteran Walter Marty Wally Schirra Jr., has played a critical logistical role in the US Navy, supplying ammunition, food and spare parts to combat ships.

However, after years of deployment in the Middle East, the vessel was deemed in critical need of comprehensive maintenance.

Upon inspection, engineers at warship builder Hanwha discovered around 260 corroded sections requiring urgent attention. So, the shipyard performed extensive structural and system upgrades, ensuring the ship was fit for renewed service.

After six months of extensive maintenance, repair and overhaul (MRO) work, the vessel set sail again on Thursday, marking a historic first for the Korean shipbuilding industry – the successful refurbishment of a US naval ship on Korean soil.

A NEW CHAPTER

The completion of the Wally Schirra project has fueled optimism within the Korean shipbuilding sector for further US Navy contracts.

With China’s rapidly expanding naval capabilities – its fleet surpassing the US Navy’s in sheer numbers – Washington is prioritizing fleet modernization.

However, US shipyards have struggled with delays in MRO work, prompting the Pentagon to seek reliable allies to shoulder some of the burden.

Korea and Japan, each home to globally competitive shipbuilding industries, have emerged as Washington’s most viable partners.

Seoul’s shipbuilding capabilities, specifically through Hanwha Ocean and another warship builder HD Hyundai Heavy Industries Co., are second only to China in global rankings.

Analysts point to recent legislative efforts in the US Senate to allow foreign shipbuilders to construct and service US Navy and Coast Guard vessels as a signal of deeper cooperation to come.

Last month, Mike Lee and John Curtis, Republican senators from Utah, introduced the Ensuring Naval Readiness Act and the Ensuring Coast Guard Readiness Act, designed to modernize and expedite construction and procurement processes for US maritime forces by fostering increased collaboration with allied nations.

Once the bills are enacted, HD Hyundai and Hanwha are set to emerge as top beneficiaries of US President Donald Trump’s push to forge deeper shipbuilding ties with allied nations, analysts said.

HANWHA EXPANDS FOOTPRINT IN THE US MRO MARKET

Hanwha Ocean is already expanding its footprint in the US, having acquired a shipyard in Philadelphia as part of its long-term strategy.

Hanwha said it plans to heavily invest in Philly Shipyard Inc., which it acquired last June, to meet Washington’s requirements to manufacture battleships for its Navy on US soil.

Hanwha executives said the company aims to secure up to six MRO contracts for US Navy ships this year following two such deals, including the Wally Schirra project, in 2024.

The US Navy is known to be earmarking $146.8 billion by 2028 to build 55 warships, including fleet oilers, salvage vessels, guided-missile destroyers and others.

Hanwha Ocean is a unit of chemicals-to-defense-business conglomerate Hanwha Group. Formerly Daewoo Shipbuilding & Marine Engineering Co., better known as DSME, Hanwha Ocean is the only Korean company that has built submarines for the Korean Navy.

HD HYUNDAI’S CHUNG KI-SUN IN US NAVAL ACADEMY

HD Hyundai Heavy, the owners of the world’s largest shipyard in Ulsan, is also preparing its bid to enter the US MRO sector, reinforcing expectations that naval collaboration between Korea and the US will continue to deepen.

This sentiment was echoed earlier this month when Chung Ki-sun, executive vice chairman of HD Hyundai Co., visited the US Naval Academy in Maryland.

Meeting with Superintendent Vice Admiral Yvette M. Davids and naval cadets, Chung reaffirmed Korea’s commitment as a steadfast US ally, highlighting Korea’s role as a global leader in shipbuilding innovation.

Before his visit, Chung met with Alex Karp, chief executive of artificial intelligence firm Palantir Technologies, in Washington, D.C., where they discussed integrating AI into shipbuilding under the AI Smart Shipyard initiative.

In a symbolic gesture, the HD Hyundai chief presented Karp with a model of the Geobukseon – the iconic 16th-century Korean battleship – underscoring Korea’s long naval tradition.

US POLICY SHIFT

As the US-China trade conflict remains unabated, Korea stands to gain from shifting supply chain dynamics in the global shipbuilding sector.

In 2024, China dominated new vessel orders with 70.6% market share, followed by Korea at 16.7% and Japan at 4.9%.

With Beijing facing mounting geopolitical hurdles, Seoul and Tokyo are expected to absorb a growing share of high-value naval contracts, analysts said.

Last November, then President-elect Donald Trump sought deeper shipbuilding ties with Korean shipbuilders, acknowledging Korea’s world-class shipbuilding expertise.

US Navy Secretary nominee John F. Phelan recently referenced Hanwha’s acquisition of the Philadelphia shipyard in his Senate confirmation hearing, stressing the importance of attracting Korean capital and technological know-how to the US defense sector.

“Korea’s ability to conduct large-scale maintenance to USNS ships within the Indo-Pacific Theater demonstrates the strong strategic partnership between the Republic of Korea and the United States,” said Rear Adm. Neil Koprowski, commander of US Naval Forces Korea, in a release on the Hanwha MRO completion.

Write to In-Soo Nam at isnam@hankyung.com

Jennifer Nicholson-Breen edited this article.