Hanwha Ocean plans to invest an additional minimum of $70 million in the Philly Shipyard in the United States, which it acquired last year. Through this investment, the company aims to increase the dock productivity of the shipyard in Philadelphia to an annual level of 10 ships by 2035.

As the shipbuilding industry has emerged as a key card in U.S.-Korea tariff negotiations, this investment plan is interpreted as a move to foster stronger cooperation between the two countries.

According to the shipbuilding industry on Aug. 24, the White House recently disclosed investment plans of global companies in the United States through its website, stating that Hanwha Ocean will invest $70 million in expanding the Philadelphia shipyard.

Hanwha Ocean acquired Philly Shipyard last year with an investment of $100 million (approximately 140 billion won). At the time of acquisition, there were doubts about the effectiveness of the purchase. However, the atmosphere changed when President Donald Trump showed interest in cooperation with Korea in the shipbuilding sector.

Previously, Hanwha Ocean announced that it would increase the annual shipbuilding capacity of Philly Shipyard from the current level of 1 to 1.5 ships to more than 10 ships by 2035. In response, industry observers speculated that Hanwha Ocean would make additional investments in the shipyard to expand facilities, including dock expansion.

If Hanwha Ocean raises the annual construction capacity to 10 ships, the shipyard is expected to be reborn as a medium-sized shipyard with annual sales of $4 billion. Philly Shipyard has emerged as a base for conducting maintenance, repair, and overhaul (MRO) business for U.S. Navy ships based on Korea’s shipbuilding technology.

As Philly Shipyard has emerged as a symbol of the U.S.-Korea shipbuilding cooperation project “MASGA (Make American Shipbuilding Great Again),” the government is expected to present this as a negotiation card and seek a breakthrough for tariff relief. President Lee Jae-myung is also scheduled to visit Philly Shipyard on Aug. 26 (local time).

Source:Business Korea