U.S. Review of Overseas Warship Building Nears Conclusion

The review of the U.S. plan to construct overseas warships is set to conclude by November 12, as the Trump administration explores building Navy vessels at allied nations' shipyards like South Korea and Japan. The Department of Defense was instructed in August to develop a new procurement plan utilizing overseas shipbuilders within 90 days.

The review will assess vessel designs, costs, construction periods, and the method of producing subsequent vessels domestically. The White House endorsed the "Finland model," which involves constructing up to two surface combatants abroad before producing the rest in the U.S., provided overseas firms invest in domestic shipyards and transfer technology.

Countries under review include South Korean Chungnam-class, Japanese Mogami-class, and Turkish Istanbul-class frigates. The U.S. Department of Defense and Navy have shown interest in the South Korean design due to its rapid construction speed and low costs. Meanwhile, Japan is noted for its armament capabilities and compatibility with U.S. weapon systems.

The South Korean shipbuilding industry is expanding its local cooperation in the U.S., with HD Hyundai Heavy Industries partnering with Huntington Ingalls Industries for distributed construction vessels, and Hanwha Group establishing a joint venture with Kiewit to build a new shipyard. However, the review's outcome hinges on Congress's legislation and budget approval, which remains uncertain, especially with the Democratic Party's majority in both houses after the midterm elections.