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HD Hyundai has secured its first U.S. Navy contract for maintenance, repair, and overhaul (MRO) services, following South Korea’s recent proposal of the MASGA (Maritime Alliance for Shipbuilding and Global Advancement) initiative aimed at bolstering bilateral cooperation in shipbuilding.

On August 6, HD Hyundai announced that its shipbuilding arm, HD Hyundai Heavy Industries, had won a contract to perform regular maintenance on the USNS Alan Shepard, a 41,000-ton supply vessel assigned to the U.S. Navy’s 7th Fleet. The vessel, named after the first American astronaut, was commissioned in 2007 and measures 210 meters in length, 32 meters in width, and 9.4 meters in height.

The maintenance work will begin in September at a pier near HD Hyundai Mipo Dockyard in Ulsan, South Korea. It will include tasks such as propeller cleaning, tank servicing, and equipment inspections. The refurbished vessel is scheduled to be delivered back to the U.S. Navy in November.

This marks a significant milestone in Korea’s dual-track strategy toward U.S. naval cooperation: constructing commercial ships locally in the U.S. while handling maintenance for military vessels in Korea. HD Hyundai’s win follows three similar MRO contracts previously secured by Hanwha Ocean, signaling increasing competition and influence of Korean shipbuilders in the U.S. defense market.

According to Market Research Future, the U.S. Navy’s MRO market is projected to grow from $1.9 billion in 2024 to $3.6 billion by 2035, with an average annual growth rate of 6%. As maritime rivalry intensifies between the U.S. and China, demand for naval MRO services is expected to continue rising — with Korean companies likely to play a growing role.

HD Hyundai is also preparing to expand its presence in the U.S. commercial shipbuilding sector and workforce development. The company is expected to lead training efforts under the MASGA framework. Earlier this year, HD Hyundai Vice Chairman Jeong Gi-seon visited the U.S. Naval Academy, and in June, the company co-hosted the Korea-U.S. Shipbuilding Cooperation Forum with around 40 experts from universities such as the University of Michigan and MIT.

Additionally, HD Hyundai has entered a technical cooperation agreement with Edison Chouest Offshore (ECO), a U.S. shipbuilding group, to co-build container vessels locally. The company has reportedly begun dispatching staff to U.S. shipyards on a regular basis in preparation for the project.

“This MRO contract is especially meaningful as it’s the first awarded since the Korean government proposed MASGA,” said Joo Won-ho, head of HD Hyundai Heavy Industries’ special ship division. “As Korea’s leading shipbuilder, we’ll do our utmost to successfully complete the MRO work on the U.S. Navy’s logistics support vessel.”