HD Hyundai signed on Monday a memorandum of understanding (MOU) to establish a multi-billion-dollar investment program to revitalize the U.S. shipbuilding industry, marking the first milestone in the ‘Make American Shipbuilding Great Again (MASGA)’ initiative.
The Korean shipbuilding giant said it had signed the agreement with Cerberus Capital and the Korea Development Bank (KDB) at the InterContinental The Willard in Washington, D.C., to establish a Korea-U.S. maritime joint investment program.
The signing took place at the Korea-U.S. Manufacturing Partnership MOU ceremony, presided over by U.S. secretary of commerce Howard Lutnick and Korea’s minister of trade, industry and energy Kim Jung-kwan.
The ceremony was attended by Chung Kisun, executive vice chairman of HD Hyundai; Frank Bruno, CEO of Cerberus; and Kim Bock-kyu, vice chairman and COO of KDB.
The investment program aims to revitalize and enhance the maritime capabilities of the United States and allied nations, covering U.S. shipbuilding, maritime infrastructure, and advanced marine technologies, according to HD Hyundai.
The firms will prioritize investment in three areas: U.S. shipyard acquisition and modernization, supply chain reinforcement through capital investment in equipment and component suppliers and advanced shipbuilding technology development, including autonomous navigation and artificial intelligence (AI).
HD Hyundai will serve as both an anchor investor and a technical and industrial partner to help ensure the effective management of the program.
In particular, the company says it will leverage its expertise in the shipbuilding and maritime sectors to evaluate the technological feasibility, competitiveness, and growth potential of investment targets, contributing to the program’s decision-making process.
Cerberus will act as the program’s management company, overseeing overall investment strategy and operations, while KDB will help ensure the successful operation of the investment program by providing support to Korean investors, according to HD Hyundai.
This MOU represents the first tangible outcome of Korea-U.S. cooperation in the shipbuilding sector following the bilateral summit.
HD Hyundai anticipates that it will serve as a significant opportunity to reinforce strategic collaboration between the two countries in shipbuilding and to establish a new model of partnership.
HD Hyundai executive vice chairman Chung Kisun said the partnership with Cerberus Capital will not only provide tangible support for MASGA, which aims to revitalize the U.S. shipbuilding industry, “but also create new markets and growth opportunities for Korean shipbuilders.”
“We believe our strategy can play an important role by bringing investments alongside operational and technical capabilities to high-impact opportunities,” said Cerberus CEO Frank Bruno, calling the program a “historic commitment to revitalizing the U.S. maritime sector.”
