Posted on January 12, 2026
Around 9 a.m. on the 12th, near the seaside of Yeongdo-gu, Busan. Piercing through the harsh winter winds, the U.S. Navy’s 40,000-ton military support ship ‘USNS Amelia Earhart’ emerged. It arrived at HJ Shipbuilding & Construction Co’s Yeongdo Shipyard for repairs. Over the coming months, the ship will undergo MRO (Maintenance, Repair, and Overhaul), including major system inspections, repairs, part replacements, and painting.
The U.S. military MRO business is one of the future growth drivers pursued by HJ Shipbuilding & Construction Co (formerly Hanjin Heavy Industries). The company experienced a decade-long recession due to a global shipbuilding slump. With a recent uptick in global ship orders and successful restructuring, it narrowly turned profitable in November 2024 after 11 years. Learning from this, the company is actively expanding into MRO, a sector less affected by market fluctuations.
While the U.S. competes with China for maritime supremacy, its domestic shipyards face aging infrastructure and labor shortages. Although the U.S. does not outsource warship production, it sends 130–150 naval vessels annually for MRO to allied nations’ shipyards due to insufficient domestic capacity. The U.S. Navy’s MRO budget grew from $6 billion in 2020 to $7.3 billion in 2023, with projections of steady increases amid intensifying competition with China. This has spurred competition among shipbuilders in South Korea, Japan, and Singapore to secure these contracts.
◇Emerging Market: Naval Vessel MRO
Domestic shipyards have traditionally focused on building new ships, whether commercial or specialized. However, the prolonged industry downturn from the mid-2010s to early 2020s shifted perspectives. The need to sustain operations during low-order periods, known as the “hungry season,” became critical. Amid the U.S.-China maritime rivalry, the U.S. is bolstering its naval forces, elevating MRO as a new market. MRO is a non-cyclical revenue source, as demand persists as long as operational vessels exist.
South Korea’s expectations further rose with the launch of the ‘MASGA (Making American Shipbuilding Great Again)’ project during last year’s tariff negotiations.
Hanwha Ocean secured the MRO contract for the U.S. Navy’s supply ship ‘USNS Will Rogers’ in August 2024, refurbishing it to “like-new” condition and sending it back to sea in March last year. It has now secured a total of five contracts. HD Hyundai Heavy Industries successfully completed maintenance on the ‘USS Alan Shepard,’ its first MRO project for the U.S. Navy last year, and is set to begin work on the ‘Cesar Chavez’ this month as its second project. Samsung Heavy Industries signed a memorandum of understanding (MOU) with U.S.-based Vigor Marine Group in August last year to collaborate on MRO projects.
Mid-sized shipbuilders are also moving. HJ Shipbuilding & Construction Co is nearing certification for the U.S. Navy’s Master Ship Repair Agreement (MSRA), a prerequisite for high-difficulty warship maintenance. SK Ocean Plant, designated as a defense company in 2017 and acquired STX Shipbuilding’s special vessel division in 2019, has declared its entry into the MRO market and is pursuing MSRA certification.
Last year, the US Navy’s military support ship ‘Wally Schirra’ undergoes MRO work at Masan Gaposin Port, Masanhappo-gu, Changwon City, Gyeongnam Province. /Yonhap
U.S. Market Alone Worth $20 Trillion
Naval MRO is a high-barrier market requiring security, technical, and quality certifications. The domestic shipbuilding industry notes limited competitors and the potential for long-term contracts once trust is established.
The market outlook is bright. According to Mordor Intelligence, the global naval MRO market is projected to grow from $57.76 billion (approximately 84 trillion Korean won) in 2024 to $63.62 billion (approximately 92 trillion Korean won) by 2029. Industry estimates suggest the U.S. market alone exceeds $20 trillion.
South Korean shipbuilders are targeting the U.S. 7th Fleet’s maintenance needs in the Indo-Pacific region, traditionally handled by Japan. With the MASGA project in motion, expectations for Korean shipbuilders are rising. Some view MRO-driven trust as a potential stepping stone for future U.S. warship construction contracts.
