HD Hyundai is expanding its footprint in the United States by partnering with Kiewit, a top U.S. construction, engineering, and infrastructure firm, to build a brand-new shipyard on American soil.
Following Hanwa’s acquisition of Philly Shipyard, HD Hyundai’s move to secure a U.S. production base signals the acceleration of South Korean shipbuilders entering the American market to target the $150 billion bilateral shipbuilding cooperation project known as "MASGA."
HD Hyundai announced on October 23 that it signed an agreement with Kiewit in Houston, Texas, the previous day to establish a shipbuilding joint venture.
Establishing HD Kiewit Shipyard and Advanced Tech Integration
The joint venture will be named "HD Kiewit Shipyard." While the final equity structure has not yet been finalized, HD Hyundai is expected to secure a stake of over 50%.
HD Hyundai plans to combine its world-class shipbuilding technology and shipyard operational know-how with Kiewit’s manufacturing and construction capabilities to establish a top-tier shipyard in the United States.
HD Kiewit Shipyard will construct a cutting-edge smart shipyard on an industrial site in the U.S., with construction slated to begin next year and full operations targeted for 2029.
The company is currently reviewing multiple potential sites in the southern and western regions of the U.S., and detailed locations will be disclosed once finalized.
The new facility will leverage advanced technologies such as digital twins, automated production systems, and robotic welding. By operating the entire processβfrom design to productionβon a data-driven basis, the initiative aims to boost productivity, quality, and safety while addressing the skilled labor shortage in the U.S. shipbuilding industry.
Expanding U.S. Naval and Infrastructure Partnerships
HD Hyundai plans to pursue business opportunities in U.S. Navy auxiliary support vessels and commercial shipping sectors using the new shipyard. The company is also reviewing plans to manufacture and supply ship blocks and modules to other U.S. shipyards, with future intentions to expand cooperation into port infrastructure.
Once completed according to schedule, this shipyard will become the second production base secured by a South Korean shipbuilder in the United States.
Unlike Hanmi’s approach of acquiring an existing facilityβsuch as Hanwha’s acquisition of Philly Shipyard for $100 million in December 2024βHD Hyundai’s strategy stands out by building a brand-new shipyard from scratch in the U.S.
Boosting Local Employment and Supporting MASGA
Industry experts note that this project aligns closely with U.S. policies to revitalize its domestic shipbuilding industry. Rather than simply reviving aging shipyards, building new facilities directly expands America’s ship construction capacity and local maritime ecosystem.
HD Hyundai expects local employment at the shipyard to reach approximately 3,000 workers once operations are in full swing, alongside concurrent efforts to provide technical training for local personnel and build out a robust supply chain.
Attention is also focused on whether this joint shipyard will be included as an investment target under the $150 billion MASGA fund. MASGA is a large-scale shipbuilding cooperation project promoted by the U.S. and South Korea to rebuild the American shipbuilding sector and expand production capacity, with South Korean investments and technology transfers cited as key areas of cooperation.
Choi Han-nae, head of the Planning Division at HD Korea Shipbuilding & Offshore Engineering, stated that the launch of HD Kiewit Shipyard is a crucial milestone demonstrating HD Hyundai’s commitment and vision as a strategic partner to the U.S. maritime industry, adding that the company will contribute to revitalizing American shipbuilding and expanding bilateral cooperation.
Chad Johnson, CEO of Kiewit Maritime, also emphasized that combining Kiewit’s workforce, facilities, and construction capabilities with HD Hyundai’s shipbuilding expertise will establish a modern shipyard in the United States.
