Exclusive: Hanwha Ocean lands third US Navy repair contract

The USNS Charles Drew is expected to dock soon at Hanwha Ocean’s Geoje shipyard, where it will undergo a three-month maintenance overhaul. The scope of work includes repairs to the hull and the disassembly, servicing and reassembly of key internal structural components. Navy vessels typically arrive within two weeks of contract signing.

USNS Wally Schirra, a U.S. Navy logistics support ship, departed Hanwha Ocean’s Geoje shipyard on March 13, 2025, after about six months of maintenance, repair, and overhaul work. This was the first major U.S. Navy vessel overhaul performed at a South Korean shipyard./Hanwha Ocean

In a previous project involving the USNS Wally Schirra, Hanwha discovered hull damage beyond the original work order. The company and the Navy reached a supplemental agreement, known as a “change order,” to cover the added repairs. Industry officials say a similar extension could be needed for the Charles Drew, potentially increasing the total contract value to more than 30 billion won, or about $21 million.

The latest award marks Hanwha’s third maintenance, repair and overhaul (MRO) deal with the U.S. Navy. After securing the Wally Schirra contract in August 2023, Hanwha won another in November for the USNS Yukon, a replenishment oiler that recently completed repairs and has since left the Geoje facility, according to people familiar with the matter.

Hanwha is pushing deeper into the naval MRO space. In June 2023, it partnered with its affiliate Hanwha Systems to acquire Philly Shipyard in Philadelphia for $100 million, a move designed to strengthen its position in the U.S. defense supply chain.

The company said it aims to secure five to six MRO contracts by the end of 2025 as part of its long-term expansion strategy.

[Kim Ji-hwan]

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