Trump order on foreign-built US ships boosts Hanwha, but strings attached

The U.S. Navy has received a boost from Hanwha Group, a major shipbuilder, after President Donald Trump approved a new policy that allows foreign shipbuilders to construct up to two U.S. Navy vessels in their home shipyards. This decision, outlined in a national security memorandum, marks the first time in decades that such an arrangement has been permitted.

The policy applies to foreign shipbuilders that have made significant investments in U.S. shipyards. Hanwha Group, known for its substantial investments in the American shipbuilding sector, is expected to benefit from this development. However, the advantages of this arrangement come with certain conditions. After the first two vessels, all subsequent ships would need to be constructed within the United States.

The memorandum also stipulates that foreign shipbuilders must either build a new shipyard in the U.S. or acquire a majority stake in an existing one. While the immediate advantage lies with Hanwha Group, the subsequent benefits will be contingent upon compliance with these additional stipulations.