Forging International Ties in Shipbuilding
In a significant move to strengthen international defense partnerships, Fairbanks Morse Defense and South Korea’s HD Hyundai Heavy Industries have entered into a memorandum of understanding (MOU) to explore collaboration on future international navy programs. This agreement was announced at the Sea Air Space conference and highlights the ongoing efforts to foster cooperation between the U.S. maritime industry and established shipbuilders in South Korea and Japan.
George Whittier, CEO of Fairbanks Morse, emphasized the necessity of looking beyond domestic constraints in U.S. shipbuilding. „There’s a lot of industrial constraints in the U.S., and so we’re going to have to look outside,” he stated in an interview with Breaking Defense. He emphasized that while the aim isn’t to outsource all U.S. ship construction to foreign builders, there are valuable lessons to be learned from each other’s strengths in the industry.
Expanding Capabilities through Collaboration
The MOU paves the way for the two companies to collaborate in various areas, including parts sales, equipment licensing, and component manufacturing. This partnership positions Fairbanks Morse to expand its reach to the South Korean navy while simultaneously enhancing the range of components it can offer the U.S. Navy through HD Hyundai’s capabilities.
This agreement represents Fairbanks Morse’s first major international partnership since its separation from EnPro Industries in 2020. Specializing in critical components for naval vessels—such as engines, propulsion systems, fans, and valves—the Wisconsin-based firm has acquired 13 companies in the last five years. Still, Whittier noted that approximately 90 percent of its business has been focused on U.S. customers. „As we continue to want to try to grow the company, we have to start looking outside of our shores,” he remarked.
Leveraging Expertise for Mutual Benefit
Won Ho Joo, CEO of HD Hyundai’s naval and special ship business unit, expressed confidence that Hyundai’s extensive experience in constructing high-quality ships for South Korea will significantly benefit the U.S. Navy. “Hyundai Heavy Industries has been constructing high-quality ships for the Republic of Korea for over 50 years,” Joo stated, highlighting the potential for enhanced collaboration.
The partnership with Fairbanks Morse aligns with HD Hyundai’s strategy of forming alliances with U.S. defense firms; just days earlier, the company signed another MOU with American shipbuilding giant HII to explore opportunities for joint initiatives that would accelerate ship production for both defense and commercial projects.
As both companies delve deeper into this partnership, they are poised to leverage their unique expertise, ultimately contributing to the fortification of the naval industrial base and enhancing naval capabilities for both nations.
