This is interpreted as a strategy to seek direct benefits utilizing a U.S. shipyard under the MASGA (Make America’s Ships Great Again) phase, which expands shipbuilding cooperation between South Korea and the United States.

According to the industry on Aug. 21, HD Hyundai is currently holding negotiations with multiple companies to acquire a U.S. shipyard.

HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company of HD Hyundai’s shipbuilding sector, established a local U.S. subsidiary, ‘HD Hyundai USA,’ in the first half of this year, beginning preliminary preparation work for the acquisition of a U.S. shipyard.

The subsidiary is expected to handle tasks related to major local investments in the United States, including the future acquisition of a U.S. shipyard.

Analysts say that HD Hyundai is pushing for the acquisition of a U.S. shipyard with speed, as the United States recently opened the door for warship construction on the premise of local investment.

U.S. President Donald Trump ordered on Aug. 13 (local time) that foreign shipbuilders can also build up to two U.S. warships.

However, he set conditions such as building a shipyard in the United States, acquiring a U.S. shipyard, or securing a majority stake in a shipyard. In other words, participation in U.S. warship construction is impossible unless a foreign company holds at least a majority stake in a U.S. shipyard.

Accordingly, HD Hyundai appears to be speeding up its acquisition of a U.S. shipyard.

As HD Hyundai has meticulously prepared for the acquisition of a U.S. shipyard for a long time, expectations are that tangible results will emerge soon.

HD Hyundai already signed a memorandum of understanding with the global private equity firm Cerberus Capital Management and the Korea Development Bank in August last year to create a joint investment program for the South Korea-U.S. shipbuilding industry, deciding to engage in investments related to the acquisition and modernization of U.S. shipyards.

HD Hyundai Chairman Chung Ki-sun has emphasized, “We will push for the acquisition and upgrade of U.S. shipyards, the development and construction of advanced vessels, and the expansion of the shipbuilding equipment supply chain.”

If HD Hyundai secures a U.S. shipyard, it will establish a foundation capable of direct benefits in the MASGA phase.

An industry official said, “As HD Hyundai increases the speed of its push to acquire a U.S. shipyard, the outline of the acquisition will be somewhat revealed within this year,” adding, “If HD Hyundai acquires a U.S. shipyard, it is expected that the expansion of orders linked to MASGA will also begin in earnest in the future.”

Regarding this, HD Hyundai’s position is, “We are reviewing various measures, including the acquisition of a U.S. shipyard and equity investment, for the successful promotion of the South Korea-U.S. shipbuilding cooperation MASGA project, but nothing has been confirmed so far.”

Source: BusinessKorea