Trump inks MOU allowing US Navy ships to be built overseas
The memorandum of understanding will allow foreign shipbuilders to construct up to two vessels in their home shipyards overseas.
South Korean shipbuilders, led by Hanwha Group, are poised to benefit first from U.S. President Donald Trump's push to revitalize the American naval industrial base, according to experts. The new National Security Presidential Memorandum signed by Trump last week permits foreign shipbuilders with U.S. investments to construct up to two vessels at their parent shipyards, with the goal of addressing gaps in U.S. Navy capacity and strengthening the country's naval position against China.
Hanwha already meets this requirement after acquiring the Philly Shipyard on the U.S. East Coast in 2024. The company plans to invest an additional $5 billion to increase its shipbuilding capacity from 1 to 1.5 vessels to 20 annually, with initial vessels potentially built at a South Korean facility and subsequent vessels produced at the Philly Shipyard.
This move could further expand cooperation between South Korea and the United States in areas such as technology transfer and worker training, potentially leading to the construction of US military vessels at Hanwha's Geoje facility in South Korea and at the Philly Shipyard.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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