Eastern Shipbuilding Partners with HII to Boost U.S. Navy Destroyer Production

Eastern Shipbuilding Group (ESG) has entered a strategic partnership with HII’s Ingalls Shipbuilding Division to enhance the production of outfitted structural units for the U.S. Navy’s Flight III Arleigh Burke-class guided missile destroyers. This collaboration aims to strengthen America’s naval shipbuilding capacity during a critical period for the nation’s defense industrial base. The agreement builds on a successful pilot program that saw ESG construct DDG units at its facility in Panama City, Florida.

Strengthening Naval Capabilities Through Collaboration

The partnership between ESG and HII allows both companies to utilize their unique expertise to meet the increasing demands of the U.S. Navy’s fleet requirements. Joey D’Isernia, CEO of Eastern Shipbuilding Group, expressed pride in the collaboration, emphasizing the company’s nearly fifty years of experience in delivering high-quality steel and aluminum vessels. “This collaboration strengthens our national shipbuilding capability—expanding industrial capacity and enhancing our nation’s competitive advantage,” D’Isernia stated.

To support this initiative, ESG is investing significantly in infrastructure improvements at its Nelson Street government shipbuilding facility, with completion expected this summer. These enhancements are designed to substantially increase ESG’s capacity to construct and deliver multiple ships annually. This strategic investment aligns with HII’s broader strategy to expand its throughput capabilities across the United States, as the company partners with various shipyards and fabricators to meet the rising demand from the U.S. Navy.

Expanding the Shipbuilding Network

HII’s commitment to enhancing its shipbuilding capabilities is evident in its recent announcements. The company has doubled its outsourced hours for 2025 and aims to quadruple them within two years. HII CEO Chris Kastner noted that the company is experiencing increased hiring and reduced attrition, contributing to a growing base of experienced workers.

HII and Job Corps Partner to Build Careers at Ingalls Shipbuilding 

The current scope of destroyer work involves collaboration with six different shipbuilding partners across multiple states, focusing on the construction of DDGs 135, 137, and 139. These partners were strategically selected from outside HII’s traditional labor market to leverage existing skilled labor and facility capacity. HII’s structural assembly network now includes 23 companies and is continuously expanding, with international partnerships being explored to further enhance the shipbuilding industrial base globally.

In addition to these developments, HII has recently acquired a manufacturing facility in Goose Creek, South Carolina, now known as Charleston Operations. This site will produce completed submarine modules and structural aircraft carrier units, with significant potential for future expansion. This distributed shipbuilding model marks a significant shift in U.S. naval procurement strategy, as the Department of Defense aims to rebuild domestic industrial capacity while addressing the growing demand for new vessels in an increasingly competitive maritime environment.