Philadelphia: Hanwha Group, South Korea's chemicals-to-shipbuilding conglomerate, announced its decision to invest 7 trillion won (US$5 billion) in its shipyard based in the United States. This announcement comes in the wake of President Lee Jae Myung's recent summit with U.S. President Donald Trump.
According to Yonhap News Agency, the investment is set to significantly enhance production capacity at Hanwha Philly Shipyard located in Philadelphia. This move aligns with the bilateral cooperation initiative known as "Make American Shipbuilding Great Again" (MASGA), as highlighted by the group in a press release. Hanwha unveiled the investment plan during a ceremony held at the shipyard on Tuesday (U.S. time), which was attended by President Lee for the christening of the State of Maine, a National Security Multi-mission Vessel (NSMV) constructed for the U.S. Maritime Administration (MARAD).
Hanwha Group Vice Chairman Kim Dong-kwan emphasized the group's commitment to revitalizing the U.S. shipbuilding industry. During the event, he stated that Hanwha will collaborate with local stakeholders to attract investment in the shipyard and create new business opportunities. The group aims to increase the shipyard's annual production capacity to 20 vessels, a significant rise from the current capacity of 1 to 1.5 vessels, though no specific time frame was provided for reaching this target.
Hanwha Group's acquisition of Philly Shipyard for 140 billion won last year marked its entry into the U.S. shipbuilding market, with a long-term goal of securing contracts from the U.S. Navy. The shipyard is owned by two affiliates: Hanwha Ocean and defense solutions provider Hanwha Systems, which hold 40 percent and 60 percent stakes, respectively.
Hanwha Philly Shipyard stands as the first U.S. shipyard acquired by a South Korean shipbuilder, becoming a key component of the Seoul-led MASGA project. President Trump has consistently highlighted the need to revive the U.S. shipbuilding industry, emphasizing the importance of allies like South Korea, a global leader in naval vessel construction.
In a related development, South Korea signed a trade deal in late July, reducing U.S. reciprocal tariffs on South Korean goods to 15 percent from 25 percent. This was part of Seoul's commitment to invest $350 billion and purchase $100 billion in U.S. energy. Of the pledged investment, $150 billion is allocated to the MASGA project, as stated by Seoul.