S.Korea's HJ S&C eyes US Navy MRO market

HJ Shipbuilding & Construction Co. (HJ S&C) said on Wednesday it won a 124.7 billion won ($894 million) contract from the Defense Acquisition Program Administration (DAPA) to lead the performance upgrade and system development for 18 guided missile fast attack crafts (PKGs) for the South Korean Navy. 

The PKGs will be delivered by 2023 to the South Korean Navy. 

Based on its extensive technical expertise and business capabilities, the shipbuilder is also preparing to enter the U.S. Maintenance, Repair, and Overhaul (MRO) market. 

PKG is a 440-ton fast attack craft (PKX-A) developed by the South Korean Navy to replace older high-speed vessels.

HJ S&C was responsible for constructing eight of these ships, including the first Yoon Yeong-ha-class guided missile ship, which was built in 2008. By 2018, a total of 18 PKGs had been commissioned into service.

According to the company, DAPA and HJ S&C have proven to be effective next-generation fast attack craft, capable of carrying out anti-ship, anti-air, and electronic warfare missions.

“Through this fast attack craft upgrade project, which will run through 2030, as well as our expansion into the overseas MRO market, we aim to enhance our competitiveness in the maritime defense industry," an HJ S&C source said.

Write to Hyeon-woo Oh at ohw@hankyung.com