Aker American strengthens ties with Hyundai Mipo

Aker American strengthens ties with Hyundai Mipo

   Aker American Shipping said its Philadelphia shipyard has signed an agreement with Korea’s Hyundai Mipo Dockyard Co. Ltd., “extending the current relationship to include additional tankers as well as containerships.”

   Hyundai has been providing design and procurement services for a series of 10 46,000 deadweight-ton tankers being constructed at Aker American’s shipyard in Philadelphia. The new agreement covers an additional six tankers, which result from an order Aker received from Overseas Shipholding Group in February, “as well as exclusive rights for containerships.”

   The shipyard’s close cooperation with Hyundai has been a source of strife between Aker and the union representing many of its workers.

   Metal Trades Department president Ron Ault has complained that Aker is building “kit” or “paint-by-numbers” ships, because it uses components made overseas and procured by Hyundai for Aker. The company said it is using best practices in the shipbuilding industry and notes it has played a role in reviving a moribund U.S. commercial shipbuilding industry.

   The union said it is suing the U.S. Coast Guard over its decision to allow the ships to participate in the “Jones Act” coastwise trade, claiming there is not enough domestic content in the vessels.