Fairbanks Morse Defense (FMD) and South Korea’s HD Hyundai Heavy Industries (HHI) have signed a memorandum of understanding (MOU) aimed at strengthening international cooperation in maritime defense. The agreement, signed April 8 during the Sea-Air-Space expo, outlines plans to explore joint opportunities in support of future global naval programs.
The MOU was signed by George Whittier, CEO of Fairbanks Morse Defense, and Won-ho Joo, Chief Executive of Naval and Special Ships at HHI, at the FMD booth during the annual maritime defense event near Washington, D.C.
“The U.S. is signaling to the world that it’s ready to reestablish itself as a shipbuilding nation, and global companies are eager to be part of that effort by working with the American industrial base,” said Whittier. “This MOU allows both our companies to explore avenues that drive mutual growth while still supporting our national manufacturing and maritime defense priorities.”
HHI is the world’s largest shipbuilder, with a 13% share of the global order backlog in 2024, measured in compensated gross tonnage (CGT), an FMD press release noted. The company brings over 50 years of experience in naval ship construction and has delivered warships to the Republic of Korea Navy and several allied nations.
Fairbanks Morse Defense, a portfolio company of Arcline Investment Management, has supplied power and propulsion systems to the U.S. Navy, U.S. Coast Guard, and Military Sealift Command for nearly 100 years. In addition to engines, the company offers OEM parts, field services, and advanced maritime technologies for the sustainment of the current fleet and development of future platforms.
“HD Hyundai Heavy Industries has been constructing high-quality warships for the Republic of Korea and allied nations for over 50 years, and we believe our expertise can significantly contribute to the U.S. Navy,” said Won-ho Joo. “Fairbanks Morse Defense’s longstanding relationships with the Navy make it an ideal partner for this collaboration.”
The agreement comes at a time of increased demand for U.S. naval shipbuilding capacity and greater emphasis on allied industrial cooperation. While the MOU does not outline a specific project, the companies said they aim to identify potential joint initiatives that align with shared strategic interests.
Also at Sea-Air-Space, HHI signed a separate MOU with Huntington Ingalls Industries (HII) to evaluate joint efforts to accelerate ship production for both defense and commercial markets. That agreement was formalized by HII Ingalls Shipbuilding President Brian Blanchette and HHI’s Joo. According to both companies, their collaboration will aim to boost production efficiency, advance innovation in ship design and construction, and strengthen the defense industrial bases in both the United States and South Korea.
