Introduction: Hanwha Ocean’s Ambitious Goals for Global Shipbuilding
Hanwha Ocean, one of South Korea’s largest shipbuilders, is setting its sights on expanding its presence in the US market. The company aims to boost its revenue from overseas military vessel orders to nearly $2.9 billion by 2030. Central to its strategy is winning more repair and maintenance contracts with the U.S. Navy.
1. Hanwha Ocean’s Strategy for US Expansion
In a recent interview, Steve SK Jeong, head of Hanwha Ocean’s Naval Ship Global Business, outlined the company’s plans to strengthen its foothold in the U.S. market. Hanwha Ocean has already won two U.S. Navy orders for ship repairs, marking its first significant contracts with the military. Jeong emphasized the importance of these repair orders as a step towards winning new build contracts in the future.
2. The Role of Trump’s Shipbuilding Initiative
The push for shipbuilding has been strongly supported by U.S. President Donald Trump, who has vowed to revitalize U.S. shipyards. The Trump administration’s executive orders aim to restore the U.S.’s capacity in this crucial industry, providing opportunities for foreign players like Hanwha Ocean to secure orders, despite challenges posed by U.S. laws like the Byrnes-Tollefson Amendment, which restricts foreign shipyards from building U.S. Navy vessels.
3. Hanwha Ocean’s Philadelphia Shipyard and US Shipbuilding Potential
Hanwha Ocean acquired a Philadelphia shipyard in 2024 to enhance its U.S. presence and is working to modernize facilities and train workers to meet U.S. shipbuilding standards. Jeong pointed out that Hanwha’s manufacturing processes are already far more efficient than those of U.S. shipyards, which are hindered by outdated facilities and a shortage of skilled technicians.
4. The Challenges of Competing in the US Market
While the new strategy holds promise, Hanwha Ocean faces significant hurdles. Transplanting its advanced manufacturing techniques into the U.S. shipyards is no simple task. The company plans to introduce automation and modernize processes, aiming to reduce build times by up to 30%, making the Philadelphia facility more competitive.
5. The Future of Hanwha Ocean’s Military Shipbuilding Business
As Hanwha Ocean competes for global defense contracts, it is looking to expand beyond the U.S. Its naval ship business has already seen success in South Korea, building submarines for the country’s navy. Moving forward, Hanwha plans to export submarines to Poland and Canada and frigates to Thailand. The company is aiming for sustained foreign sales, with a target to increase revenue to 4 trillion won ($2.9 billion) by 2030, up from 1.05 trillion won in 2024.
6. Conclusion: Hanwha Ocean’s Expanding Role in Global Shipbuilding
With its ambitious plans to modernize U.S. shipbuilding and expand its global naval orders, Hanwha Ocean is positioning itself as a key player in the defense and military shipbuilding market. As the company navigates the complexities of international trade and U.S. defense laws, its focus on efficiency and innovation will likely shape its success in the coming years.
For more insights on the global shipbuilding industry and the future of defense contracts, check out our related articles on U.S. Shipbuilding and Military Contracts.
