Houston:South Korean shipbuilding giant HD Hyundai Co. announced plans to establish a joint venture with U.S. engineering and construction company Kiewit to construct a new shipyard in the United States.

According to Yonhap News Agency, the agreement to form the joint venture, tentatively named HD-Kiewit Shipbuilding LLC, was signed in Houston on Thursday. The venture aims to begin construction of the shipyard next year, with full-scale operations expected by 2029.

Under the agreement, HD Hyundai will contribute its shipbuilding technology and production expertise, while Kiewit will apply its engineering and construction capabilities to support the development of the facility. This initiative marks a significant move as it involves building a new shipyard rather than upgrading an existing one, which is anticipated to enhance U.S. shipbuilding capacity and fortify domestic supply chains.

The joint venture will investigate business prospects in U.S. Navy logistics support vessels and commercial ships. Additionally, it will consider the production and supply of ship blocks and modules to American shipyards. The companies also plan to extend their collaboration into port infrastructure development.

HD Hyundai views this project as a vital milestone in bolstering its role as a strategic partner to the U.S. shipbuilding industry, pledging to aid in expanding shipbuilding cooperation between the two countries. Chad Johnson, president of Kiewit Maritime Co., expressed optimism about the collaboration, highlighting the potential to build a modern shipyard that enhances U.S. shipbuilding capacity, develops a skilled workforce, and strengthens the domestic supply chain.