Korea’s HD Hyundai ties up with GE, L3Harris for warship exports

South Korea’s top shipbuilder HD Hyundai Heavy Industries Co. is joining hands with major US defense technology firms to expand its presence in the global naval vessel industry.

HD Hyundai Heavy and GE Aerospace said they on Tuesday signed a memorandum of understanding to cooperate on marine propulsion systems to win global navy contracts such as one for the Australian Navy’s $7.2 billion frigate project.

The South Korean company separately agreed with L3Harris Technologies Inc., a US-based military contractor, to collaborate on Canada’s submarine project.

“We aim to cement the K-warship dominance by securing technology optimized for export vessels through cooperation with global defense companies,” said Joo Won Ho, chief executive of HD Hyundai’s naval and special ship business unit, after signing those deals on the sidelines of Sea Air Space 2024, a US maritime expo held in Maryland this week.

The company formerly Hyundai Heavy Industries Co. said last month it has won a $463 million contract to build four warships for Peru’s Navy -- South Korea’s largest-ever naval vessel export deal to Latin America.

HD HYUNDAI TO BUILD WARSHIPS EQUIPPED WITH GE AEROSPACE GAS TURBINES

HD Hyundai agreed with GE Aerospace to design and build warships, while the US aircraft and marine engine manufacturer is set to supply its gas turbines.

“This joint collaboration will expand our worldwide presence and make a strong case for HD HHI and GE Aerospace to build and power the newest vessel for the Royal Australian Navy frigate project,” said Rita Flaherty, GE Aerospace’s vice president of global sales and business development, referring to HD Hyundai Heavy Industries.

In February, Australia said it would boost its defense spending by an additional A$11.1 billion ($7.2 billion) over the next decade to procure six "optionally crewed" warships and 11 new frigates, as it aims to double its fleet of combat-ready ships.

The two companies plan to expand their cooperation into gas turbine maintenance, repair and overhaul capabilities for HD Hyundai’s warships equipped with GE Aerospace marine gas turbines.

Separately, HD Hyundai is slated to jointly work on local procurements, technology transfers, offset trades and others with L3Harris to win a deal for the Canadian submarine project.

Canada is seeking to replace its aging Victoria-class submarines with new models. Media in the country reported the Royal Canadian Navy urged the government to purchase up to 12 new conventionally-powered attack submarines for the project.

HD Hyundai’s South Korean rival Hanwha Ocean teamed up with four Canadian submarine tech companies for the deal last November.

Write to Woo-Sub Kim at duter@hankyung.com
 

Jongwoo Cheon edited this article.