- $350 Billion U.S.-Korea Investment Targets Shipbuilding Growth.
- Hanwha Plans Major Expansion and Record Vessel Orders.
- Philly Shipyard’s Proven Track Record Strengthens U.S. Industry.
During his speech at the APEC CEO Summit on Wednesday, President Donald Trump highlighted South Korea’s recent acquisition and expansion of Philadelphia’s shipyard, describing it as a pivotal moment for U.S.-Korea maritime collaboration, reports gCaptain.
U.S.-Korea Partnership at APEC Summit
“And today we’re not really building ships and we’re going to start and we’re going to have a very thriving, very thriving shipbuilding industry and we’re working it with South Korea very much so. In fact, some of the people in this room, they bought the Philadelphia shipyard,” Trump said. “I think it’s going to be one of the most successful yards in the world anywhere in the world. It’s great.”
$350 Billion U.S.-Korea Investment Deal
These comments came alongside the announcement of a significant $350 billion investment deal, which includes $150 billion dedicated to revitalising America’s shipbuilding industry. Hanwha purchased Philly Shipyard for $100 million in December 2024 and revealed an ambitious $5 billion expansion plan aimed at ramping up production from under two vessels a year to as many as 20.
Major Expansion and New Orders
The expansion plan features the construction of two new docks, three quays, and a block assembly facility. In August, Hanwha Shipping made headlines by ordering 10 medium-range oil and chemical tankers, marking the largest commercial vessel order in the U.S. in over 20 years. The first of these vessels is expected to be delivered by early 2029. Additionally, Hanwha has placed an order for a second LNG carrier to be built in the U.S., bringing the total number of LNG carrier orders to their highest level since the 1970s. This project will be a collaboration between Hanwha Ocean’s Korean yard and Hanwha Philly Shipyard, which will ensure compliance with U.S. regulations.
Philly Shipyard’s Strong Record
Since its inception in 2003, Philly Shipyard has successfully delivered 30 vessels, including container ships and product tankers. The shipyard also has a contract with TOTE Services for National Security Multi-Mission Vessels for the U.S. Maritime Administration, with three vessels already delivered.
Trade Tensions Pose Risks
The expansion faces risks from rising U.S.-China trade tensions. Beijing recently sanctioned five U.S.-linked subsidiaries of Hanwha Ocean as both sides imposed new port fees.
South Korea’s Minister of Defence Procurement Program Administration Seok Jong-gun warned: “I don’t see how we can make all the materials and supplies for Philly Shipyard within the U.S. So if you’re going to get a lot of things to the U.S. from South Korea, and you have sanctions and all kinds of obstacles to doing that, I’d say there’s going to be an impact on MASGA eventually.”
Broader Trade and Maritime Strategy
The trade agreement also resulted in a reduction of U.S. tariffs on Korean automobiles and parts from 25% to 15%, bringing them in line with those of Japanese competitors. The Trump Administration’s Maritime Dominance Order outlines a Maritime Action Plan aimed at bolstering domestic shipbuilding, aligning trade with industrial objectives, and exploring funding options such as a maritime security trust fund.
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Source: gCaptain
