Fraser Industries LLC has signed a memorandum of understanding (MOU) with HD Korea Shipbuilding & Offshore Engineering (HD KSOE) to develop a modernization program for Fraser Shipyards, Superior, Wis.
The agreement calls for the companies to evaluate the yard’s facilities and operations, redesign production areas, and introduce new automation and digital systems. Fraser and HD KSOE plan to sign a contract for a shipyard modernization consulting program later this year.
Under the MOU, HD KSOE will provide expertise covering shipyard design and construction, production systems, operations, and data management. The companies intend to use Fraser Shipyards as a demonstration site for modernization efforts that could be applied elsewhere in the U.S. shipbuilding industry.
The agreement covers an assessment of the Superior yard, recommended facility upgrades, changes to the yard and plant layout, and the introduction of robotics and automated equipment. The companies will also examine ways to improve cost control, production schedules, quality, and productivity.
Other areas of cooperation include artificial intelligence and data-based systems, expansion of the shipbuilding supply chain, and technical workforce development.
Fraser Shipyards has operated on Lake Superior for more than 130 years. The yard performs vessel repair, maintenance, conversion, design, and new construction work for the Great Lakes maritime industry.
The agreement was signed during a ceremony in Washington, D.C., attended by U.S. Commerce Secretary Howard Lutnick, South Korean Industry Minister Kim Jung-kwan, Fraser Industries CEO Patrick V. Kelly, and HD KSOE CEO Kim Hyung-kwan. Shin Jong-Gye, a technology adviser and professor emeritus at Seoul National University, also attended after helping connect the companies during the early stages of the collaboration.
“We are very pleased to join hands with HD Hyundai, which possesses world-class technological capabilities, to introduce advanced techniques across shipyard operations,” Kelly said. “The cooperation between the two companies will be an important starting point for the revitalization of the U.S. shipbuilding industry.”
HD KSOE is the intermediate holding company for HD Hyundai’s shipbuilding operations. The company has also been developing digital shipyard technology intended to connect vessel design, production, logistics, inspection, and other stages of construction through shared data systems.
“We plan to provide the know-how needed from shipyard design through to operation so as to support Fraser Shipyards in becoming a hub for the rebuilding of the U.S. shipbuilding industry,” Kim said. “Going forward, we will expand the scope of cooperation into various areas and become a reliable partner for the U.S. shipbuilding industry.”
