Hanwha Ocean announced on July 22 that it has signed a contract worth 348 billion won to build one liquefied natural gas (LNG) carrier from its affiliate, Hanwha Philly Shipyard. Hanwha Philly Shipyard is the operating company of Philly Shipyard in Pennsylvania, which was acquired by Hanwha Group. This move appears to be a full-scale implementation of the Korea-U.S. shipbuilding cooperation plan, utilizing production bases in both countries.

The structure of this contract involves Hanwha Ocean’s U.S. shipping subsidiary, Hanwha Shipping, placing an order for the construction of an LNG carrier. Hanwha Philly Shipyard, as a U.S. shipyard, signs the contract and then subcontracts the construction to Hanwha Ocean. While a significant portion of the LNG carrier construction will be carried out at Hanwha Ocean’s Geoje site, Hanwha Philly Shipyard will support the certification process to meet the U.S. Coast Guard (USCG) regulations and marine safety standards. Registration as a U.S. vessel requires compliance with USCG standards and certification, which will be led by Hanwha Philly Shipyard, leveraging its extensive experience in building ships in the United States.

Hanwha Group’s strategy is to engage in the rebuilding of the U.S. shipbuilding and shipping industries through this joint Korea-U.S. shipyard construction model. Previously, U.S. President Donald Trump had requested assistance from the Korean shipbuilding industry to revive the U.S. shipbuilding sector. Hanwha Group proactively established a foothold for targeting the U.S. market by acquiring Hanwha Philly Shipyard for approximately $100 million in December last year through Hanwha Ocean and Hanwha Systems. The group is also preparing to enter the U.S. shipping market through Hanwha Shipping.

The newly ordered vessel is the first export-oriented LNG carrier to be ordered from a U.S. shipyard in about 50 years since the late 1970s. It holds significant strategic value as it preemptively responds to the U.S. federal government’s policy to gradually mandate the use of U.S.-built LNG carriers for exporting U.S.-produced LNG from 2029. Hanwha Group is assessed to have secured a leading position in ship construction and LNG supply in the North American LNG carrier market. Hanwha Ocean has also secured an option contract for an additional LNG carrier.

Hanwha Ocean plans to gradually transfer the shipbuilding technology of domestic shipyards to Hanwha Philly Shipyard, while Hanwha Philly Shipyard aims to expand its business into high-value-added ship sectors. Hanwha Ocean is working to enhance Hanwha Philly Shipyard’s production capabilities through the introduction of smart systems, workforce retraining, and technology transfer. The goal is to complete the capacity to build LNG carriers in the United States.

A Hanwha Ocean official emphasized, “Hanwha Philly Shipyard is a pivotal shipyard that has built more than half of the large commercial vessels subject to the Jones Act in the United States. This project will not only elevate Hanwha Philly Shipyard’s technical capabilities to the next level but also serve as an opportunity to apply Hanwha Ocean’s global technology to the U.S. shipbuilding industry.”

Source:Business Korea