Hanwha Ocean Says It Will Make Long-Term Investments If MRO’s Value Is Recognized

[Financial News] Hee-Chul Kim, CEO of Hanwha Ocean, said on the 3rd that the company intends to make long-term investments in the ship MRO (maintenance, repair and overhaul) business. If a Busan MRO and ship-repair cluster is established under the Make American Shipbuilding Great Again (MASGA), a U.S.-Korea shipbuilding cooperation project, it could create synergies with Korea’s world-class shipbuilding capabilities.
In a written welcoming address at a forum held that day at the National Assembly Library to discuss the establishment of a maritime MRO and ship-repair cluster ushering in the MASGA era, Kim said, "If investments in facilities and technologies to enhance maintenance capabilities are fairly evaluated, and efforts to grow together with the local community are recognized for their value, companies will also be able to invest from a more long-term perspective."
The forum was hosted by Hanwha Ocean, Busan and Song Ok-joo of the ruling Democratic Party of Korea. Working-level officials from Hanwha Ocean, the Defense Acquisition Program Administration (DAPA), the Ministry of Trade and Industry, and the Ministry of Oceans and Fisheries (MOF) participated in the discussion.
Kim said, "Ship repair is evolving into a high-value-added industry that combines AI (artificial intelligence), robotics and data-based diagnostic technologies." He added, "As in Singapore’s example, if Korea, which possesses world-class shipbuilding technology, expands the maintenance sector by integrating finance, engineering and services, it will create tremendous synergies."
Kim noted that securing competitiveness in the MRO industry requires the timely procurement of parts, supply chains for docks, quaysides and equipment, and a concentration of skilled technical personnel. He emphasized, "That is why a cluster needs to be established," adding, "We must address the gap left by Korea’s failure to become a central player in MRO despite having the world’s strongest shipbuilding competitiveness."
Legislation and budgetary support are essential to establishing the cluster. Chun Jae-soo, mayor of Busan, also appealed for such support in a written welcoming address. Song said, "A few days ago, I urged Hwang Jong-woo, Minister of Oceans and Fisheries, to take an interest in the proposal to establish an MRO cluster, and the ruling party will pursue the necessary legislation." The MOF also presented a roadmap at the forum to establish a cluster in the southern area of Busan New Port at a cost of 1.5 trillion won.

[email protected] Kim Yoon-ho Reporter