South Korea’s HD Hyundai has agreed to establish a joint venture with US engineering and construction giant Kiewit to build a new American shipyard, targeting operations from 2029.

The venture, HD Kiewit Shipbuilding, plans to begin construction in 2027 at a yet-to-be-announced US industrial site. HD Hyundai expects the facility to create around 3,000 jobs once fully operational.

The partners signed the agreement in Houston on Thursday, expanding a strategic shipbuilding partnership announced in July.

The greenfield yard will incorporate HD Hyundai’s Future of Shipyard production model, including digital twins, automated manufacturing and robotic welding.

It will target US Navy auxiliary vessels and commercial shipbuilding contracts, while also exploring the production of ship blocks and modules for other American yards.

The move deepens HD Hyundai’s involvement in Washington’s efforts to revive domestic shipbuilding, supported by South Korea’s $150bn maritime investment commitment. The Korean group has been steadily expanding its American partnerships. In July, it signed an agreement with Fraser Industries to modernise Great Lakes shipyards, while August saw the launch of an automated welding pilot with Huntington Ingalls Industries at its Ingalls Shipbuilding facility in Mississippi. HD Hyundai has also partnered with Edison Chouest Offshore’s Tampa Ship to develop US-built LNG dual-fuel containerships, providing design, procurement and construction expertise. Its robotics division secured orders earlier this year to supply automated welding systems to Chouest yards in North America and Brazil.

Unlike compatriot Hanwha’s acquisition of Philly Shipyard, HD Hyundai is pursuing newbuild yard development alongside upgrades to existing American facilities.