Hanwha, Fincantieri shares rise after Trump opens Navy shipbuilding to foreign yards

Shares of South Korea's Hanwha Group and Italy's Fincantieri surged on August 14 after President Donald Trump opened U.S. Navy shipbuilding to foreign yards, according to a national security memorandum. Hanwha Ocean Co stock increased by 5.6%, while Fincantieri SpA rose by 3.2%. The directive permits foreign shipbuilders to construct up to two ships in their parent shipyards for rapid delivery, provided they make substantial investments in U.S. shipyards and train American workers.

Hanwha, with the largest U.S. shipyard footprint, is the leading candidate, thanks to its $5 billion investment in the Pennsylvania yard, part of a trade deal with Washington. Fincantieri, Europe's largest shipbuilder, has spent over $800 million on U.S. shipyards over the past decade and recently secured a $30 million Navy contract for early work on Medium Landing Ship vessels.

However, the shift may initially favor tankers and roll-on/roll-off vessels due to their lower cost and complexity.