Samsung Heavy Industries (SHI) is expanding its U.S. shipbuilding cooperation areas from military support vessels to joint construction of liquefied natural gas (LNG) bunkering vessels.
The shipbuilder announced on Dec. 5 that it signed a trilateral business cooperation agreement with NASSCO, a U.S. shipbuilding company under General Dynamics, and Korean engineering company DSEC at the World Workboat Show held in New Orleans, U.S., from Dec. 3-5 (local time).
According to this agreement, Samsung Heavy Industries will expand its business with NASSCO and DSEC into areas including ship design, equipment and parts supply, and human resource development. Additionally, the companies plan to consider joint bidding for the U.S. Navy’s next-generation military support vessel project. The U.S. Navy’s next-generation military support vessels refer to ships that can secure rapid mobility and efficiently perform supply operations for fuel oil, ammunition, food materials, and other supplies.
NASSCO, headquartered in San Diego, U.S., is General Dynamics’ shipbuilding affiliate company that operates five yards across four states in the United States. It is a major shipbuilding company that specializes in military support vessel and commercial vessel design, procurement, production, and maintenance, repair, and overhaul (MRO) operations, as well as construction of commercial vessels including container ships. DSEC established a strategic partnership with Samsung Heavy Industries last month and is seeking global business expansion including in the United States.
Meanwhile, Samsung Heavy Industries also signed a memorandum of understanding (MOU) with U.S. Conrad Shipyard on the same day for cooperation in joint construction of LNG bunkering vessels. Conrad is a shipyard that operates five yards in Louisiana and Texas, engaging in new construction, repair, and conversion of vessels including barges, tugboats, and government vessels.
The two companies plan to jointly construct LNG bunkering vessels and participate together in the U.S. LNG transportation market. The U.S. LNG bunkering market is expected to grow due to securing LNG price competitiveness, increasing demand for eco-friendly fuel, and expanding infrastructure investments including bunkering terminals.
Accordingly, Samsung Heavy Industries has established a cooperation framework in the United States ranging from MRO operations for military support vessels with Vigor Marine Group to joint construction of next-generation military support vessels and joint construction of LNG bunkering vessels in the commercial vessel sector. A company official emphasized, “Samsung Heavy Industries’ technological capabilities accumulated over 50 years will demonstrate synergy through ‘MASGA’ cooperation,” adding, “Technology exchange and human resource development will also accelerate further, significantly contributing to strengthening U.S. shipbuilding competitiveness.”
Source: BusinessKorea