US Navy Considers Korean Shipyards for Fleet Expansion

The Trump administration is exploring the possibility of outsourcing military shipbuilding to South Korean shipyards. This move comes as the U.S. seeks to enhance its naval capabilities in response to China’s growing maritime power. Recent discussions between U.S. officials and South Korean leaders have highlighted the need for collaboration in shipbuilding, particularly in maintenance, repair, and overhaul (MRO) services. The U.S. Navy’s current shipbuilding capacity is under scrutiny, with reports indicating that China’s shipbuilding capabilities far exceed those of the United States.

Korean Shipbuilders Poised for Opportunities

South Korean shipbuilders are preparing for potential partnerships with the U.S. Navy. The recent acquisition of Philly Shipyard by Hanwha Group, along with MRO contracts from the U.S. Navy, signals a shift in the landscape. Experts believe these developments could pave the way for increased collaboration. Bence Nemeth, an associate professor at King’s College London, noted that Hanwha’s success in Philadelphia could lead to more opportunities for South Korean firms. If Hanwha can demonstrate efficiency in shipbuilding, it would benefit both South Korea and the U.S. Navy.

Henry Haggard, a senior advisor at the American Chamber of Commerce in Korea, emphasized the need for a broader approach. He suggested modifying the Jones Act, which currently restricts shipbuilding to U.S. facilities, to allow for construction in allied countries. This change could facilitate the production of essential vessels, such as LNG carriers, which have not been built in the U.S. since the 1970s. Haggard proposed a joint ownership structure for modern shipyards in the U.S. that would enable South Korean companies to invest significantly, preserving U.S. shipbuilding capacity while creating jobs.

While other Korean shipbuilders, like HD Hyundai, are monitoring Hanwha’s progress, the U.S. Navy’s plans to expand its fleet present new avenues for exploration. The U.S. Congressional Budget Office has projected a need for increased naval tonnage over the next 30 years, indicating a significant gap in shipbuilding capacity that foreign partnerships could help fill.

As geopolitical tensions rise, the U.S. may increasingly turn to South Korea, which boasts the world’s second-largest combat shipbuilding capacity. Discussions are already underway between Korea’s Defense Acquisition Program Administration and local shipbuilders to assess the feasibility of outsourcing military vessel construction.

Source: theinvestor.co.kr

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