Philadelphia: Hanwha Ocean Co., a major shipbuilder from South Korea, is set to inject an additional US$70 million into its shipyard located in Philadelphia. This development was revealed through the White House's website on Monday, marking a significant step in Hanwha Ocean's strategic expansion in the U.S. shipbuilding market.
According to Yonhap News Agency, Hanwha Group acquired the Philly Shipyard last year for 140 billion won (approximately US$100 million). This acquisition was part of the group's broader strategy to penetrate the U.S. shipbuilding industry with an eye on securing contracts from the U.S. Navy. The ownership of the shipyard is divided between two affiliates, with Hanwha Ocean and Hanwha Systems holding 40 percent and 60 percent stakes, respectively.
Hanwha Ocean's ambitious plans include increasing the shipyard's annual production capacity from the current range of 1 to 1.5 vessels to between eight and ten vessels by the year 2035. Concurrently, the company aims to boost its annual sales dramatically, from $400 million to a projected $4 billion within the same timeframe. However, the company has not yet officially confirmed this additional investment.
The acquisition of Hanwha Philly Shipyard stands as a landmark event, making it the first U.S. shipyard owned by a South Korean shipbuilder. It symbolizes a growing cooperation in shipbuilding between Seoul and Washington, a partnership that has been dubbed "Make American Shipbuilding Great Again" (MASGA).
U.S. President Donald Trump has underscored the importance of reviving the American shipbuilding industry, emphasizing the contributions from allies like South Korea, which is renowned for its prowess in naval vessel construction. In a related development, South Korean President Lee Jae Myung is expected to visit the shipyard on Tuesday, following his summit with President Trump in Washington.