HD Hyundai inks shipbuilding deal with Edison Chouest Offshore in U.S.

In a significant move for the U.S. shipbuilding industry, HD Hyundai has formed a strategic partnership with Edison Chouest Offshore (ECO). Announced on Sunday, the collaboration aims to construct commercial vessels in the United States, marking a pivotal expansion for the Korean shipbuilder. The agreement was formalized during a ceremony at ECO’s headquarters in New Orleans, Louisiana, attended by key executives from both companies.

Strategic Collaboration for Vessel Construction

Under the newly signed agreement, HD Hyundai and ECO will focus on the construction of dual-fuel liquefied natural gas (LNG) container ships. This partnership is particularly timely, as U.S. shipbuilders have faced a decline in orders, with only three container ships ordered between 2022 and 2024. ECO, a prominent U.S.-based shipbuilding group, operates five shipyards and has a history of constructing over 300 vessels, primarily in the offshore support sector.

The two companies plan to collaborate on building mid-sized container carriers at ECO’s shipyards through 2028. HD Hyundai will contribute by providing ship design, equipment procurement, and technical support, while also manufacturing and supplying some of the vessel blocks. This partnership not only aims to enhance vessel production but also to invest in technological advancements that will benefit both companies.

Looking ahead, the partnership is set to expand beyond container ships. Future plans include cooperation on additional vessel types and port security-related infrastructure, such as harbor cranes. This strategic alliance underscores the importance of collaboration in revitalizing the U.S. shipbuilding industry and enhancing maritime security.

Strengthening Ties with U.S. Shipbuilding

HD Hyundai’s partnership with ECO reflects a broader strategy to strengthen ties with the U.S. shipbuilding sector. The company has previously signed a memorandum of understanding (MOU) with Huntington Ingalls Industries, the largest defense shipbuilder in the U.S., to improve ship production efficiency and advance shipbuilding technologies. Huntington Ingalls is known for constructing every nuclear-powered aircraft carrier and most nuclear submarines for the U.S. Navy.

Additionally, HD Hyundai has collaborated with academic institutions, signing an MOU with the University of Michigan and Seoul National University to foster shipbuilding talent. This initiative is part of a larger effort to enhance cooperation in the maritime sector between the U.S. and South Korea.

Experts predict an increase in naval and commercial vessel orders from the U.S. government in the coming years. Yang Jong-seo, a senior researcher at the Export-Import Bank of Korea, noted that more companies are likely to enter the U.S. market through partnerships with local shipyards, similar to the collaboration between HD Hyundai and ECO.