Samsung Heavy Industries will expand its cooperation with the U.S. shipbuilding industry to include next-generation fleet replenishment oilers and joint construction of LNG bunkering vessels.
Samsung Heavy Industries said on the 5th it signed a three-party business cooperation agreement with U.S. shipbuilder General Dynamics NASSCO (hereafter NASSCO) and Korean engineering firm DSEC during the four-day International WorkBoat Show held in New Orleans from the 3rd (local time).
Under the agreement, Samsung Heavy Industries will expand business with NASSCO and DSEC into ship design, equipment and parts supply, and workforce development. It will also review a joint bid for the U.S. Navy's "next-generation fleet replenishment oiler" program. The U.S. Navy's next-generation fleet replenishment oiler refers to a vessel designed to secure rapid mobility and efficiently carry out resupply operations for fuel oil, ammunition, and provisions.
NASSCO, headquartered in San Diego, is General Dynamics' shipbuilding affiliate and operates five yards across four U.S. states. It is a major shipbuilder engaged in the design, procurement, production, and MRO of fleet replenishment oilers and merchant vessels, and also builds merchant ships such as container carriers.
DSEC is a Korean shipbuilding and offshore engineering specialist that formed a strategic partnership with Samsung Heavy Industries in Nov. to pursue global expansion, including in the United States. DSEC and NASSCO have cooperated for 20 years on ship design and package supply of equipment and materials.
Samsung Heavy Industries also signed an MOU for joint construction of LNG bunkering vessels with U.S. shipyard Conrad Shipyard. An LNG bunkering vessel is a ship that supplies liquefied natural gas (LNG) at sea to vessels that use LNG as fuel.
Conrad is a shipyard with five yards in Louisiana and Texas that engages in newbuilding, repair, and conversion of vessels such as barges, tugboats, and government vessels.
The two companies plan to participate together in the U.S. LNG transport market through joint construction of LNG bunkering vessels. The U.S. LNG bunkering market is expected to grow on the back of LNG price competitiveness, rising demand for eco-friendly fuels, and expanded investment in infrastructure such as bunkering terminals.
Accordingly, Samsung Heavy Industries will establish a cooperation framework in the United States that extends from MRO for fleet replenishment oilers with Viega Marine Group to joint construction of next-generation fleet replenishment oilers and joint construction of LNG bunkering vessels in the merchant ship sector.
A Samsung Heavy Industries official said, "The technological prowess Samsung Heavy Industries has accumulated over 50 years will create synergy through MASGA cooperation," adding, "We will also accelerate technology exchanges and workforce development to help strengthen the competitiveness of U.S. shipbuilding."