Hyundai Heavy Industries, a leading South Korean shipbuilder, has proposed to construct Aegis destroyers for the United States, aiming to bolster Washington’s warship production capabilities. This offer was conveyed during the Sea Air Space conference 2025, where Hyundai Heavy signed a memorandum of understanding (MOU) with Fairbanks Morse Defense, a company based in Wisconsin.
An official from Hyundai Heavy emphasized that the firm boasts over 250 engineers adept at designing and constructing Aegis vessels that match the performance standards of American counterparts. Woo-man Jeong, managing director of the company’s Specialized Ship Business Division, stated that Hyundai Heavy could manufacture up to five warships annually that are comparable to the U.S. Navy’s Arleigh Burke-class destroyers, each with a displacement of 9,800 tons.
Hyundai Heavy Industries stands as the sole South Korean shipbuilder equipped to integrate the Aegis Combat System onto naval vessels. The company has already constructed four Aegis-equipped ships for the Republic of Korea Navy. The Aegis system represents a sophisticated weaponry network, featuring a centralized, automated command-and-control system, critical for the U.S. Navy’s air defense capabilities and for serving as escort ships to aircraft carriers. Notably, Arleigh Burke-class destroyers and Ticonderoga-class cruisers are fitted with this advanced system.
The South Korean shipbuilder’s announcement aligns with the U.S. Navy’s efforts to close the gap with China, whose People’s Liberation Army Navy is striving to achieve the status of the largest naval fleet globally. According to a report by the Korea Trade-Investment Promotion Agency, Washington has earmarked approximately $30 billion annually to increase its fleet from 296 to 381 ships by the year 2054. This ambitious expansion plan necessitates the construction of around 364 new warships over the next 30 years, averaging 12 vessels per year when factoring in decommissioned ships.
However, U.S. shipbuilding capacity has significantly diminished over recent years due to various factors, including limitations in shipyard capacity. Recognizing this gap, Hyundai Heavy Industries has been actively seeking partnerships with American firms to enhance its presence within the U.S. shipbuilding sector. After establishing a collaboration with Fairbanks Morse Defense, Hyundai Heavy also formed a strategic alliance with Huntington Ingalls Industries, the largest military shipbuilding company in the United States. Brian Blanchette, Executive Vice President at HII, commented on the agreement, highlighting their shared commitment to enhancing shipbuilding capabilities in support of national security. He expressed optimism that this MOU could accelerate the delivery of high-quality naval vessels through collaborative efforts and exchange of best practices.
Furthermore, Hyundai Heavy Industries previously entered into a strategic partnership with Anduril Industries, a U.S. defense contractor, to design and produce advanced autonomous naval systems, signifying their commitment to innovation and modernization in military maritime technology.
