HII, HD Hyundai sign MoU for shipbuilding collaboration

US military shipbuilder Huntington Ingalls and South Korea's HD Hyundai Heavy Industries have signed an agreement to explore opportunities to increase production in commercial and defense projects, the companies said on Monday.

The companies signed a memorandum of understanding to look into areas of innovation and maximize production efficiency using their combined resources.

The US is looking to deter China's dominance in the shipbuilding sector. In January, the US Trade Representative's probe found China's shipbuilding dominance was "unreasonable" and "actionable" under the United States' trade laws.

President Donald Trump is planning to levy fees on imports arriving on Chinese-made ships and offer tax credits to resuscitate domestic shipbuilding.

The agreement between Huntington and HD Hyundai Heavy Industries will help strengthen the collective maritime industrial base of both the US and South Korea, the companies said, as countries around the world are pushing up defense spending in the wake of growing geopolitical tensions.

HD Hyundai Heavy Industries has a global market share of about 10 per cent in shipbuilding, according to its website.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Krishna Chandra Eluri)