HD Hyundai Heavy Industries (HHI) announced on January 7, 2026, that it recently secured a maintenance, repair and overhaul (MRO) contract for the 41,000-ton cargo ship USNS Cesar Chavez, which is assigned to the U.S. Navy’s Seventh Fleet. This is the second U.S. Navy contract won by the South Korean shipbuilder.
HD HHI Press Release Translated by Naval News
Commissioned in 2012, Lewis and Clark-class dry cargo ship, USNS Cesar Chavez measures 210 meters in length, 32 meters in beam, and 9.4 meters in depth.
HD HHI will begin maintenance work on January 19 at a pier near its Medium-Sized Ship Business Division in Ulsan. The overhaul will include detailed inspections and repairs across more than 100 items, covering the hull and structure, propulsion, electrical systems, and auxiliary machinery. The vessel is scheduled to be redelivered to the U.S. Navy in March this year.
The company also noted that it successfully completed its first U.S. Navy MRO project for the logistics support ship USNS Alan Shepard, which was delivered at the end of last year and departed on February 6.
While the initial contract for USNS Alan Shepard covered approximately 60 work items, more than 100 additional tasks were identified during the overhaul process. As a result, both the maintenance period and the contract value increased significantly. Thanks to HD Hyundai Heavy Industries’ close coordination and rapid response, the entire MRO process proceeded smoothly.
A U.S. Navy official commented, “We are extremely satisfied to receive Alan Shepard reborn as a high-quality vessel delivered on schedule,” adding, “Based on our experience conducting MRO work around the world, HD Hyundai Heavy Industries has proven to be the best partner.” The official noted that the project further strengthened the partnership between the two sides.
Joo Won-ho, President of HD HHI and Head of the Naval and Medium-Sized Ship Business Unit, stated, “Building on our unmatched technology and expertise, we have successfully completed our first U.S. Navy vessel MRO project. Since the launch of the Naval and Medium-Sized Ship Business Unit, we will continue to enhance our efficiency and capabilities to lead the U.S. Navy MRO market.”
Meanwhile, HD Hyundai Heavy Industries plans to further strengthen its competitiveness following its merger with HD Hyundai Mipo at the end of last year. The integration combines accumulated naval shipbuilding expertise with dock capacity, facilities, and human resources optimized for naval vessel construction under the Medium-Sized Ship Business Division.
Naval News Comment
HD HHI underwent a major corporate restructuring last year, including a merger with HD Hyundai Mipo. As part of this reorganization, the former Naval and Special Ships Business Unit (NSSBU) was restructured and renamed the Naval & Medium-Sized Shipbuilding Business Unit, consolidating naval shipbuilding expertise with dock capacity and production resources optimized for medium-sized vessels.
This reorganization comes amid a broader global realignment of the shipbuilding industry, exemplified by the U.S.–Korea shipbuilding cooperation initiative known as MASGA (Make American Shipbuilding Great Again). Within this framework, HD HHI is positioning naval vessels as one of core pillars of its portfolio, with the aim of expanding strategic cooperation with the United States in the naval domain.
