Hyundai Heavy Industries has made a bold business move at the Sea Air Space Conference 2025. The South Korean shipbuilding giant offered to build Aegis destroyers for the U.S. Navy. This offer comes as America looks to expand its naval fleet.
Hyundai aims to support U.S. efforts to strengthen its maritime defense capabilities. The company signed a memorandum of understanding with Fairbanks Morse Defense. It also discussed its ability to deliver advanced warships at scale.
A Hyundai official said the firm employs over 250 engineers capable of building Aegis-equipped ships. These vessels could match the U.S. Navy’s Arleigh Burke-class destroyers in both performance and design. Hyundai claims it can produce up to five such ships annually.
Hyundai is the only Korean company that integrates the Aegis Combat System onto warships. It already built four Aegis destroyers for South Korea. Now, Hyundai eyes U.S. shipbuilding market as a major business opportunity.
The offer aligns with the U.S. Navy’s plan to expand its fleet. Washington intends to grow from 296 to 381 ships by 2054. This would require constructing 364 new vessels, averaging 12 ships each year. However, U.S. shipbuilding capacity has shrunk significantly.
Due to these limitations, American firms face challenges meeting rising demand. Hyundai sees this as a chance to enter the U.S. defense market. The company has started forming key business partnerships to increase its American footprint.
In addition to Fairbanks Morse, Hyundai signed an agreement with Huntington Ingalls Industries. HII is the largest military shipbuilder in the U.S. Together, they plan to boost American shipbuilding capabilities through shared expertise and resources.
Moreover, Hyundai partnered with Anduril Industries in 2024. The deal focuses on designing autonomous naval systems for future deployment. Through these strategic moves, Hyundai eyes U.S. shipbuilding market and builds strong alliances.
According to HII executive Brian Blanchette, these partnerships could fast-track delivery of high-quality vessels. He believes collaboration will strengthen national security while improving efficiency.
In summary, Hyundai’s aggressive business expansion could reshape the U.S. naval supply chain. As Hyundai eyes U.S. shipbuilding market, the defense industry watches closely.
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