Hanwha Ocean has embarked on a bold initiative to establish itself as the leading maintenance, repair, and overhaul (MRO) hub in the Indo-Pacific region. In response to the rising demand for naval vessel maintenance both domestically and internationally, the company is proactively strengthening collaborations with regional industries to secure a competitive edge.
On May 14, at its Geoje facility in Gyeongsangnam-do, Hanwha Ocean launched the ‘Naval MRO Cluster Council’ by convening a strategic meeting with 15 local companies—including Sedong Shipbuilding and SK Ocean Plant—to sign memoranda of understanding (MOUs). This coalition aims to lay the foundation for a robust naval MRO industry centered on regional growth and sustainable industrial development.
Hanwha Ocean plans to evaluate the capabilities and strategic fit of participating companies, taking a meticulous approach to fostering differentiated collaboration models. From the outset, selected partners will work closely on detailed cooperation items, with plans and project items shared in advance to optimize joint efforts.
The council will focus on expanding the competitiveness of naval MRO services, developing innovative business models for domestic and international markets, securing supply chain capacity, shortening project deployment periods, minimizing risks, and enhancing maintenance performance and operational availability.
Most of the 15 consortium members are regional shipbuilding and MRO specialists based in Busan, Ulsan, and Geoje, with Hanwha Ocean already managing a supply chain of over 1,000 parts and components for ship maintenance. Last year, the company demonstrated its regional cooperation model by winning an MRO contract for the US Navy’s USS Yukon, performing pre-maintenance work at its Geoje yard before her deployment.
Kim Dae-sik, executive director of Hanwha Ocean’s Special Ship MRO Business Division, stated, “The MRO Cluster Council aims to create a new growth ecosystem that supports the global defense industry and regional economies.” He also highlighted plans to expand beyond the Indo-Pacific, targeting the North American market as a global MRO hub.
In 2022, Hanwha Ocean made history as the first Korean shipbuilder to win US Navy contracts for two ships’ MRO services. The first vessel, USNS Wally Schirra, completed her maintenance successfully in March and has now resumed operations. Maintenance work is actively ongoing for her sister ship, USS Yukon, scheduled to depart in late May.
The global naval MRO market is projected to grow from approximately $68 billion in 2024 to $75 billion by 2029, with the US market alone accounting for about $17 billion, making it the largest segment worldwide.
