US Navy Shipbuilding Revitalization: Hanwha, HD Hyundai, Samsung Heavy Industries Set for Expanded Opportunities
In a significant move toward bolstering the US naval fleet, President Donald Trump has signaled a potential shift in procurement strategy, suggesting the United States may purchase ships built internationally. Notably, South Korean shipbuilding firms have been highlighted as crucial partners in this ambitious effort to rebuild and modernize the US Navy.
During the Pennsylvania Defense and Innovation Summit at the US Army War College in Carlisle, Pennsylvania, on Wednesday, President Trump emphasized the vital role of an expanded partnership with South Korea in revitalizing America’s aging shipbuilding industry.
“We must rebuild our Navy… We’ve got to get it going. So, we’re likely to explore collaborations with companies from South Korea and other nations, working together on new vessels,” Trump stated at the event.
“We are also committed to domestic construction. Furthermore, we will consider acquiring ships manufactured abroad. Our Navy requires a substantial number of vessels, despite already being the world’s most formidable. However, our current fleet is aging, and we have largely stepped away from active shipbuilding,” he added, underscoring the urgency for fleet modernization.
While Trump’s reference to ships made “outside the area” did not explicitly confirm foreign construction, his remarks strongly suggested an openness to overseas manufacturing options as Washington seeks to rapidly expand and modernize its naval capabilities.
Trump also highlighted an ongoing project: the construction of two National Security Multi-Mission Vessels at Hanwha Philly Shipyard in Philadelphia, a contract valued at approximately $1.5 billion, demonstrating existing cooperation.
These recent statements are the clearest indication yet that South Korean shipbuilders could assume a more prominent role in re-establishing US naval shipbuilding capacity.
President Lee Jae Myung confirmed that during their meeting at the G7 summit last month, Trump inquired about South Korea’s ability to quickly construct 10 US naval vessels. The two leaders reportedly revisited the topic of military shipbuilding during a NATO summit dinner just last week.
In a related development, the Pentagon and the US Navy recently issued Requests for Information (RFIs) to both HD Hyundai Heavy Industries and Hanwha Ocean, specifically seeking data on their capabilities for designing and constructing combat vessels.
These RFIs represent the first formal outreach by the US to South Korean shipbuilders to assess their advanced naval vessel design and construction expertise since the “Make America Shipbuilding Great Again” (MASGA) initiative launched in August, fostering shipbuilding cooperation between the two nations.
Under the MASGA project, Seoul committed to investing $150 billion last year to help reinvigorate the US shipbuilding industry, as part of its broader $350 billion investment package in the US economy.
Hanwha appears to be in a strong immediate position to capitalize on these opportunities, largely due to its existing US presence. The company acquired Philly Shipyard in December 2024 for $100 million and is currently navigating the necessary licensing processes to commence combat ship production within the United States.
“Our shipyard in Korea delivers approximately one ship per week. We have ambitious plans to replicate that impressive capability in Philadelphia,” stated Michael Coulter, president and CEO of Hanwha Defense USA, at the recent summit.
Other major South Korean players are also expanding their US partnerships to penetrate the American naval shipbuilding market. HD Hyundai has forged an alliance with Huntington Ingalls Industries, the leading US military shipbuilder, to jointly develop the US Navy’s next-generation fleet auxiliary ships. Similarly, Samsung Heavy Industries has teamed up with General Dynamics NASSCO for various US Navy shipbuilding and commercial projects.
Despite the encouraging rhetoric from President Trump, significant regulatory obstacles persist. The construction of US naval vessels at foreign shipyards is currently constrained by the Byrnes-Tollefson Amendment, which imposes restrictions on building US Navy vessels outside American territory.
Therefore, allowing South Korean yards to construct complete US Navy vessels would necessitate either a specific legal exemption, substantial legislative amendments, or an alternative arrangement sanctioned on critical national security grounds.
sahn
