HD Hyundai eyes US yard in bid to cash in on Trump’s shipbuilding revival
HD Hyundai Pursues U.S. Shipyard Acquisition
South Korea’s HD Hyundai Heavy Industries is actively negotiating with several companies to acquire a U.S. shipyard, aiming to capitalize on the renewed focus on naval expansion under President Donald Trump’s administration. A senior executive from HD Hyundai disclosed that the conglomerate has set an ambitious target of generating $2.2 billion in annual revenue from the U.S. market by 2035, with potential acquisition candidates currently under evaluation.
Strategic Investments and Partnerships
HD Hyundai has been fortifying its presence in the United States through various joint ventures, particularly in sectors like engine manufacturing, offshore engineering, and liquefied natural gas (LNG). The company’s engine division has consistently supplied propulsion systems for Jones Act tankers, while its offshore engineering unit has established technology-sharing agreements with key players along the Gulf Coast. Recently, HD Hyundai Marine Solution has engaged with U.S. digital firms to develop advanced smart-ship systems, further enhancing its technological footprint in the maritime sector.
In a significant move to support U.S. naval capabilities, HD Hyundai announced a $2 billion joint investment fund in collaboration with Cerberus, aimed at financing new naval and offshore construction projects in the U.S. The two companies are already cooperating on a yard located in the Philippines. Earlier this summer, HD Hyundai revealed plans to collaborate with Edison Chouest Offshore to construct mid-sized dual-fuel LNG containerships in the U.S. by 2028. Additionally, the company signed a memorandum of understanding (MOU) with Huntington Ingalls Industries, the largest defense shipbuilder in the U.S., to enhance productivity and adopt high-tech shipbuilding practices. It also entered into a supply chain partnership with Fairbanks Morse Defense, along with an education-focused MOU with the University of Michigan and Seoul National University to foster talent in the shipbuilding industry.
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Strengthening U.S.-South Korea Trade Relations
South Korea has positioned shipbuilding as a cornerstone of its trade diplomacy with the United States, pledging billions in investments to rejuvenate aging shipyards and maintain a favorable relationship with Washington. During President Lee Jae Myung’s inaugural visit to the U.S. last month, he proposed a $350 billion investment package, with $150 billion specifically allocated for shipbuilding initiatives under the motto “Make America Shipbuilding Great Again.”
A key element of this strategy involves the development of the Philly Shipyard by HD Hyundai’s competitor, Hanwha Ocean, which acquired the facility last year. Recently, Hanwha unveiled an ambitious $5 billion expansion plan for Philly Shipyard and has placed orders for 10 new tankers to be constructed in Philadelphia. Meanwhile, another major South Korean shipbuilder, Samsung Heavy Industries, has announced a partnership with Oregon-based Vigor Marine to modernize repair yards and enhance naval maintenance, repair, and operations (MRO) capabilities on the U.S. West Coast.
