Hanwha Group Vice Chairman Kim Dong-kwan (R) delivers a welcoming speech on the podium during President Lee Jae Myung’s visit to the company’s shipyard in Philadelphia, a day after his summit with U.S. President Donald Trump, in this photo provided by Hanwha Group. (Yonhap)
SEOUL, Aug. 27 (Korea Bizwire) — Hanwha Group, South Korea’s chemicals-to-shipbuilding conglomerate, said Wednesday it will invest 7 trillion won (US$5 billion) in its shipyard in the United States, following President Lee Jae Myung’s recent summit with U.S. President Donald Trump.
The investment aims to significantly boost production capacity at Hanwha Philly Shipyard in Philadelphia and support bilateral cooperation in shipbuilding under the initiative dubbed “Make American Shipbuilding Great Again” (MASGA), the group said in a press release.
Hanwha unveiled the plan Tuesday (U.S. time) during a ceremony at the shipyard attended by President Lee for the christening of the State of Maine, a National Security Multi-mission Vessel (NSMV) built for the U.S. Maritime Administration (MARAD).
“We will play a pivotal role in revitalizing the U.S. shipbuilding industry by partnering with local stakeholders to attract investment in the shipyard and create new business opportunities,” Hanwha Group Vice Chairman Kim Dong-kwan said during the event, according to the group.
This photo provided by Hanwha Group shows a panoramic view of Philly Shipyard Inc. in Philadelphia, Pennsylvania. (Image courtesy of Yonhap)
The group said it plans to expand the shipyard’s annual production capacity to 20 vessels, up from the current 1 to 1.5, but did not specify a time frame for the target.
Hanwha Group acquired Philly Shipyard for 140 billion won last year to enter the U.S. shipbuilding market, with the long-term goal of securing contracts from the U.S. Navy.
Two affiliates — Hanwha Ocean and defense solutions provider Hanwha Systems — hold 40 percent and 60 percent stakes in the shipyard, respectively.
Hanwha Philly Shipyard is the first U.S. shipyard acquired by a South Korean shipbuilder and has emerged as a centerpiece of the Seoul-led MASGA project.
Trump has repeatedly stressed the need to revive the U.S. shipbuilding industry while underscoring the role of allies, such as South Korea, a global leader in naval vessel construction.
In late July, South Korea signed a trade deal that reduced U.S. reciprocal tariffs on South Korean goods to 15 percent from 25 percent, in exchange for Seoul’s pledge of $350 billion in investment and $100 billion in U.S. energy purchases.
Of the pledged investment, $150 billion will be allocated to the MASGA project, Seoul has said.
(Yonhap)
