Fraser Industries LLC is laying the groundwork to expand production at Fraser Shipyards, Superior, Wis., after signing a memorandum of understanding with HD Korea Shipbuilding & Offshore Engineering to develop a modernization program for the Lake Superior yard.
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.
Patrick V. Kelly, CEO of Fraser Industries, said the partnership is intended to bring advanced Korean shipbuilding practices and technology into a U.S. yard that has operated continuously for 138 years.
“If you look at the world of shipbuilding today and compare U.S. shipbuilders to our Korean counterparts, we have a lot to learn,” Kelly told WorkBoat. “Fraser is a terrific shipyard today, and you don’t set that kind of longevity record by doing things poorly. However, we certainly recognize that we have a lot to learn.”
Kelly said Fraser wants to “leapfrog” existing shipbuilding technology and bring current best practices into the yard over the coming years.
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 currently uses about 15 acres of the 100 acres it owns at the Superior site, leaving room to add production space and equipment. Kelly said the yard also has access to an established workforce, inexpensive electricity, and readily available natural gas.
“We’ve got all the makings for substantial expansion at the yard, and that’s something HD Hyundai agrees with,” Kelly said. “They see the opportunity to bring a shipyard of the future to the Great Lakes as we take on additional work for both commercial and military opportunities.”
Fraser performs repair work on Great Lakes vessels up to 1,000 feet long and builds aluminum and steel vessels for commercial and military customers. The company’s repair business is busiest during the winter layup period, when employment at the yard increases from about 200 year-round workers to roughly 600.
The company is looking to add more new construction work to provide steadier employment outside the winter repair season. Kelly said Fraser doubled the number of vessels it delivered between 2023 and 2025 and is working to double that output again across 2026 and 2027.
Kelly said growing backlogs at larger coastal yards could create additional opportunities for smaller shipbuilders with available capacity. Fraser has built vessels up to 200' in recent years and larger vessels earlier in its history.
The modernization agreement also includes workforce development. Fraser supports six technical and community college programs through equipment donations, scrap steel and aluminum, and employees who teach after their shipyard shifts. In some cases, Kelly said, Fraser hires as much as 80% of a program’s graduating class.
Kelly said additional work would allow Fraser to hire more people and expand its support fo regional training programs.
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.”
