Hanwha Ocean and HD Hyundai Forge Strategic Partnerships with U.S. Entities Amidst China’s Maritime Dominance

President Donald Trump signed an executive order on April 9 (local time) aimed at reviving the U.S. shipbuilding industry, a move that could significantly impact South Korea’s shipbuilding sector. The executive order is part of a broader strategy to curb China’s maritime dominance and bolster U.S. naval capabilities. Despite high mutual tariffs, the U.S. is actively seeking cooperation with South Korean shipbuilders, leveraging their advanced technology and efficiency.

Earlier this year, Hanwha Ocean became the first South Korean shipbuilder to acquire Philly Shipyard in Philadelphia, marking a significant expansion into the American market. On the 7th (local time), HD Hyundai signed a Memorandum of Understanding (MOU) with Huntington Ingalls for Shipbuilding Productivity Improvement and Advanced Shipbuilding Technology Cooperation, further solidifying ties between U.S. and South Korean companies.

President Trump’s executive order underscores the urgency of revitalizing the U.S. shipbuilding industry, which has seen a decline since its peak during World War II due to increased competition from countries like China and South Korea. “We are going to spend a lot of money on shipbuilding,” Trump stated at the White House signing ceremony, acknowledging the industry’s current challenges: “We are very far behind. We used to build a ship a day, but now we can’t even build one a year.”

In addition to these developments, Hanwha Ocean has secured Maintenance, Repair, and Overhaul (MRO) orders for U.S. Navy ships ‘Wallischa’ and ‘Yukon,’ showcasing its capability in repairing and modifying naval vessels. The company also participates in constructing the U.S. Maritime Administration’s National Security Multi-Mission Vessel (NSMV) and conducts joint research with CB&I to apply land-based cargo tank technology to ships.

The legislative landscape is also shifting, with Congress proposing acts like the “Shipbuilding and Port Facility Act for America’s Prosperity and Security” (Ship Act) and the Naval Readiness Assurance Act. These initiatives aim to increase U.S.-flagged merchant ships to 250 within ten years and allow allies like South Korea to build U.S. naval vessels at their shipyards.

The collaboration between HD Hyundai and Hanwha Ocean with American entities reflects a strategic partnership that aligns with both nations’ interests in countering China’s maritime influence. HD Hyundai’s recent MRO agreement with the U.S. Navy Supply Systems Command positions it to bid on projects for combat ships operated by the U.S. Navy over the next five years.

As these partnerships develop, they highlight not only technological exchanges but also educational cooperation, as seen in last year’s MOU between HD Hyundai, the University of Michigan, and Seoul National University to foster shipbuilding industry talent.

Source : Businesskorea