This file photo, provided by Daewoo Shipbuilding & Marine Engineering, shows Donald Trump (2nd from R) and his eldest son, Donald Trump Jr. (L, rear), visiting the South Korean shipbuilder’s Okpo Shipyard on Geoje Island, about 330 kilometers southeast of Seoul, on June 5, 1998. (Image courtesy of Yonhap)
SEOUL, Nov. 29 (Korea Bizwire) — The shipyard industry of the United States is willing to work with its South Korean counterpart to improve efficiencies, a U.S. shipbuilders’ trade group has said, as U.S. President-elect Donald Trump seeks closer bilateral ties in the sector.
In his phone conversation with South Korean President Yoon Suk Yeol earlier this month, Trump said the U.S. seeks to work with South Korea in the shipbuilding industry, particularly in areas of naval maintenance, repair and overhaul (MRO).
Paula Zorensky, vice president of the Shipbuilders Council of America (SCA), said American shipyards “are willing to work with our fellow South Korean shipbuilders and allied shipyards to improve our processes and increase efficiencies.”
“There have been long-standing cooperative agreements between U.S. shipyards and our allied shipbuilding industries — including South Korea’s — for decades,” Zorensky told Yonhap News Agency in an emailed response to questions regarding future bilateral cooperation.
“U.S. shipyards have long encouraged input and investment in our facilities and are willing to work with our fellow South Korean shipbuilders and allied shipyards to improve our processes and increase efficiencies,” she added.
The vice president reiterated that the U.S. has long cooperated and worked with South Korean shipyards and suppliers, and said she expects the American industry “to continue to do so in the future as the market demands.”
South Korean shipyards, a leading force in the global shipbuilding industry, appear upbeat over potential opportunities to expand their business in America after Trump’s reelection.
Hanwha Ocean Co. recently secured two MRO contracts with the U.S. Navy for the regular overhaul and inspection of U.S. naval vessels, becoming the first South Korean firm to win such deals from the American Navy.
In June, Hanwha Group, which has Hanwha Ocean under its wings, invested US$100 million in Philly Shipyard Inc. to acquire a 100 percent stake in the U.S. shipbuilder, marking the first entry of a South Korean company into the U.S. domestic shipbuilding industry.
Zorensky noted the SCA’s priority is to “ensure a stable and predictable commercial and government shipbuilding market and support the domestic ship repair industrial base in the U.S.”
Amid outlooks of increased South Korean participation in the U.S. market, Zorensky warned of potential difficulties that might encounter foreign companies entering the U.S. market, such as “temporary U.S. Congressional spending bills, limited budgets and changes in acquisition strategy from the government customer.”
South Korean shipbuilders ranked second in 2023 in terms of new global orders for the third straight year, securing a combined 10.01 million compensated gross tons (CGTs), according to global market researcher Clarkson Research Service.
The country had previously retained the world’s No. 1 spot in new shipbuilding orders for three consecutive years before falling behind China in 2021.
(Yonhap)
