HD Hyundai says discussing potential order volume with U.S. Navy

SEOUL, Oct. 28 (Yonhap) -- South Korean shipbuilding giant HD Hyundai Co. said Wednesday it is discussing with the U.S. Navy the scale of potential orders to be built at an envisioned U.S. shipyard.

Last week, HD Hyundai signed an agreement with U.S. engineering and construction company Kiewit to establish a joint venture to build a new shipyard in the United States, with plans to begin construction next year and full-scale operations in 2029.

"The scope of U.S. investment will depend on how much volume can be secured," Jeong Woo-man, an executive at HD Hyundai Heavy Industries Co., HD Hyundai's shipbuilding unit, said at an earnings conference call, adding discussions are under way with the U.S. government and Navy.

"We are targeting orders for auxiliary ships, such as a CONSOL tanker or a roll-on roll-off vessel, while more discussion seems to be necessary for combat ships," Jeong said.

Mentioning the decision to establish the joint venture, the executive said that a local production base is necessary to clinch new business opportunities.

Following last week's announcement, HD Hyundai said it expects the joint venture to mark an important milestone in strengthening its position as a strategic partner to the U.S. shipbuilding industry, vowing to contribute to expanding shipbuilding cooperation between the two nations.

Meanwhile, HD Hyundai confirmed that it seeks to take part in South Korea's push to build a nuclear-powered submarine, which is expected to become a two-way race with rival Hanwha Ocean Co.