HD Hyundai to Invest Billions of Dollars in U.S. Shipbuilding Reconstruction

[Financial News] HD Hyundai is establishing an investment program worth billions of dollars to rebuild the U.S. shipbuilding industry. It marks the full-scale launch of the 'MASGA' plan.
On the 25th (local time), HD Hyundai attended the Korea-U.S. Manufacturing Partnership MOU signing ceremony held at the Willard InterContinental Hotel in Washington, DC, USA, hosted by Howard Lutnick, U.S. Secretary of Commerce, and Kim Jeong-gwan, Minister of Trade, Industry and Energy. They signed a Memorandum of Understanding (MOU) for the creation of a joint Korea-U.S. shipbuilding industry investment program with Cerberus Capital, Korea Development Bank.
Attendees at the event included Jeong Gi-seon, Senior Vice President of HD Hyundai, Frank Bruno, CEO of Cerberus Capital, and Kim Bok-kyu, Senior Vice President of Korea Development Bank.
The goal of this investment program is to rebuild and strengthen the maritime capabilities of the U.S. and its allies, including the U.S. shipbuilding industry, marine logistics infrastructure, and advanced marine technology. The core investments include the acquisition and modernization of U.S. shipyards, investment in equipment suppliers to strengthen the supply chain, and the development of advanced shipbuilding technologies such as autonomous navigation and AI.
HD Hyundai plans to participate as an anchor investor and technical advisor to support the successful operation of the investment program. They will leverage their accumulated industrial expertise in the shipbuilding and marine sectors to review the technical feasibility, competitiveness, and growth potential of investment targets, supporting investment decision-making.
Cerberus Capital will be responsible for the overall management and strategy formulation of the investment program as the operator. Korea Development Bank will assist in designing the participation structure for Korean investors and support recruitment to ensure the successful operation of the investment program.
This MOU signing is the first instance of a practical implementation of the cooperative system between the two countries in the shipbuilding industry following the Korea-U.S. summit. HD Hyundai expects it to be a significant opportunity to strengthen strategic cooperation between the two countries in the shipbuilding field and to establish a new cooperation model.
Jeong Gi-seon, Senior Vice President of HD Hyundai, said, "The cooperation with Cerberus Capital aims to provide substantial assistance to the MASGA, which targets the reconstruction of the U.S. shipbuilding industry, while also opening new markets and growth opportunities for the Korean shipbuilding industry. HD Hyundai will support the modernization and advancement of the U.S. shipbuilding industry based on its accumulated shipbuilding technology and digital capabilities, contributing to opening a new chapter in the global shipbuilding industry together with both countries."
Frank Bruno, CEO of Cerberus Capital, said, "It is very meaningful to announce an unprecedented new form of partnership with HD Hyundai to strengthen the U.S. shipbuilding industry. This program will play a key role in creating new opportunities by combining investment, operational, and technical capabilities."
He added, "I am grateful for the bipartisan efforts of President Trump and the U.S. Congress to unite for the reconstruction of the maritime industry, and I express deep gratitude for Korea's bold investment and support for 'MASGA'."
Kim Bok-kyu, Senior Vice President of Korea Development Bank, said, "This investment program jointly promoted by HD Hyundai and Cerberus is a new cooperation model in the shipbuilding industry and a product that demonstrates deep trust and partnership between Korea and the U.S. Korea Development Bank will actively support the successful creation of this program, representing the Korean financial sector."
HD Hyundai continues its active cooperation with the U.S. to revive the shipbuilding industry. In April this year, they signed a defense cooperation MOU with Huntington Ingalls Industries, and in June, they formed a merchant ship partnership with Edison Chouest Offshore. Additionally, earlier this month, they won a contract for the regular overhaul of the 41,000-ton supply ship 'USNS Alan Shepard' of the U.S. Navy's 7th Fleet.


ggg@fnnews.com Kang Gu-gwi Reporter