Key Takeaways
- South Korean shipbuilders Hanwha, Samsung, and HD Hyundai outlined their cooperation with the U.S. to enhance American shipbuilding during Korea Investment Week.
- HD Hyundai has reopened a shipbuilding facility in Subic Bay, focusing on maintenance for naval vessels.
- Hanwha and Samsung are expanding operations in the U.S., contributing to job creation and workforce training while boosting military capabilities amid increasing regional tensions.
Shipbuilders Unite to Enhance U.S. Naval Capabilities
South Korea’s leading shipbuilders, specifically Hanwha, Samsung, and HD Hyundai Heavy Industries, have announced significant plans to collaborate with the U.S. defense sector. This initiative, branded as MASGA (Make American Shipyards Great Again), aims to revitalize American naval shipbuilding as the U.S. seeks to enhance its maritime power in the context of rising challenges from China. The details emerged during Korea Investment Week held in Seoul from September 9 to 12.
Among these developments, HD Hyundai marked a notable achievement by reopening a dormant shipbuilding facility in Subic Bay, Philippines. This strategic shipyard had been closed but became the center of a competitive bidding contest that included both Chinese and U.S. interests. After being acquired by a U.S. firm and receiving investment from South Korea, the facility was officially inaugurated this month. Jang Gwang-pil, vice president of HD Korea Shipbuilding & Offshore Engineering Co., confirmed that the Subic Bay facility will function as a maintenance, repair, and overhaul base for vessels, including frigates and patrol craft. The company’s recent merger is also set to lead to increased production of U.S. Navy warships, including the advanced Aegis destroyer.
Hanwha made headlines by acquiring Philly Shipyard, resulting in plans to establish operational hubs in Philadelphia and Busan, South Korea. The Philly Shipyard will primarily serve as a production center, while the Busan facilities will focus on maintenance and repair services for U.S. naval vessels. This dual approach aims to bolster bilateral cooperation and contribute to job creation in the U.S., as well as benefiting the surrounding South Korean economy. Choi Jeong-hoon, head of special ship planning at Hanwha, stated that leveraging over 1,000 suppliers in the Busan region would facilitate the maintenance and repair operations for as many as 11 U.S. Navy vessels annually.
Samsung Heavy Industries also announced plans to strengthen collaboration by expanding operations across five U.S. shipyards. This follows a partnership recently established with Vigor Marine Group. Alongside enhancing shipbuilding capacities, Samsung plans to invest in the training of American workers, thereby contributing to a skilled workforce within the shipbuilding industry.
As the momentum builds for these initiatives, South Korean shipbuilders are positioning themselves as integral partners in bolstering the U.S. Navy’s operational capabilities and addressing growing maritime challenges. The combined efforts of these companies highlight a strategic alliance aimed at fortifying American shipbuilding while fostering economic growth in both the U.S. and South Korea.
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