As the U.S. Navy prepares a $1 trillion fleet expansion to counter China’s growing maritime power, South Korea’s HD Hyundai Heavy Industries is positioning itself as a key partner, leveraging its proven Aegis destroyer production capabilities and scalable shipbuilding infrastructure.
According to a recent interview with the major Korean news outlet Chosun, HD Hyundai Heavy Industries (HD HHI) showcased strong confidence in its naval shipbuilding capabilities, especially as the United States Navy prepares for a significant long-term fleet expansion.
According to recent U.S. defense plans, the U.S. Navy intends to spend $1 trillion over the next 30 years to procure new ships in an effort to stay ahead in the fleet arms race with China—a competition that is expected to shape the military landscape in the Indo-Pacific in the coming years. The plan envisions the addition of 364 new combat ships, combat logistics vessels, and support ships by 2055, requiring an average construction rate of 12 ships per year.
HD HHI sees this as a major opportunity to expand defense cooperation between South Korea and the United States. The company already has the capacity to build more than one destroyer annually, equivalent in size to the U.S. Navy’s 9,800-ton Arleigh Burke-class. If bilateral naval shipbuilding collaboration becomes active, HD HHI states it can scale up production to as many as five vessels per year.
The company’s confidence is grounded in its proven track record, including the early delivery of major naval export projects like the Philippine Navy’s new corvette BRP Miguel Malvar and the on-time delivery of domestic projects such as ROKS Jeongjo the Great (DDG-II). HD HHI also emphasized that it is the only shipyard in South Korea capable of both designing and constructing Aegis destroyers, having built five of the six Aegis ships currently in service with the ROK Navy.
Additionally, HD HHI operates a dedicated combat system integration team with experience integrating U.S. weapon systems and sensors with indigenous platforms—further strengthening its appeal as a partner in the U.S. Navy’s modernization and fleet expansion efforts.
A company representative stated:
“We have over 250 engineers capable of designing and constructing Aegis destroyers with the same level of performance as those built in the United States. And if naval shipbuilding cooperation with the U.S. begins in earnest, we also have the ability to further expand our production capacity.”
During Naval News’ most recent visit to the Ulsan shipyard, HD HHI outlined plans to expand its Naval & Special Ship Business Unit by converting two large commercial drydocks for naval ship construction, aiming to boost productivity and meet growing export demand.
By leveraging its unique capabilities and scalable infrastructure, HD HHI aims to strengthen its position in the global defense market and deepen Korea–U.S. defense cooperation through potential joint shipbuilding programs and technology collaboration.
The prospect of HD HHI contributing to U.S. naval shipbuilding efforts could spark debate in Washington, particularly as the new administration reemphasizes domestic industry while also exploring ways to strengthen cooperation with key allies. Some may see South Korea’s advanced capabilities and faster production timelines as a practical solution to meet growing fleet demands, especially amid rising pressure in the Indo-Pacific. Others, however, may raise concerns about relying on foreign shipyards for critical defense assets. As discussions continue within the U.S. defense community about allowing acquisitions from trusted partners, HD HHI’s proposal adds a compelling dimension to the evolving conversation on how best to balance industrial security with strategic urgency.
Check out Naval News’ recent video coverage of HD HHI’s impressive shipbuilding facilities in Ulsan, South Korea:
