South Korea's Hanwha Ocean Targets US Navy Orders as Trump Seeks Shipbuilding Ties
South Korean shipbuilder Hanwha Ocean aims to boost its revenue from overseas military vessels to around 4 trillion won ($2.91 billion) by 2030 and hopes to pick up more repair orders from the US Navy, a senior executive told Reuters.
The Asian country is a major global shipbuilder and trade talks with the US on tariffs brought up possible cooperation in the sector after US President Donald Trump signed an executive order to restore US shipbuilding.
Hanwha Ocean, formerly Daewoo Shipbuilding, is one of the largest shipbuilders in the world with an order book of $31.43 billion as of the end of March. It acquired a US shipyard in Philadelphia last year to expand in the market.
Its naval ships business, which has built dozens of submarines and surface vessels used by the South Korean Navy, has won two orders from the US Navy since last year to repair and overhaul its ships for the first time.
"I think we may be the biggest shipyard in the world that has taken on these maintenance, repair and overhaul orders from the US Navy," said Steve SK Jeong, head of the Naval Ship Global Business at Hanwha Ocean, days after US Secretary of the Navy John Phelan visited its shipyard.
"It is not very profitable, but learning the process of working with the US Navy is valuable, which will help if we win newbuild orders."
Hanwha Ocean hoped to win a double-digit number of US Navy maintenance and repair orders before 2030, Jeong said.
Trump has vowed to spend "a lot of money on shipbuilding" to restore US capacity, and cited concern over how his country has fallen behind in an industry that is also dominated by China.
Still, US laws can make it harder for foreign shipyards even if they have US operations. They are prohibited from building US Navy vessels, due to the Byrnes-Tollefson Amendment of the US Department of Defense Appropriations Act.
TRANSPLANTING PROCESSES
Hanwha Ocean's Philadelphia Shipyard is trying to get a license that clears it to build US Navy vessels, but transplanting cutting-edge manufacturing processes honed from competition with other South Korean and Chinese shipyards is not as simple as bringing in some automated welding machines, Jeong said.
"I think the US shipbuilding industry hasn't had to compete very much. Facilities are old, and there's a shortage of technicians," Jeong said.
"We are looking to modernize facilities, train and equip workers, and bring in our manufacturing process that can build the same ship in, I think, two-thirds the time or less as that of a US shipyard."
Jeong said the company is investing in South Korea to use existing facilities and expand naval ship capacity to build five submarines and three surface vessels at the same time by 2029, from two submarines and two surface vessels now.
Despite building 17 submarines for the South Korean Navy since 1987, Hanwha Ocean has only actively competed for overseas orders in the last few years as South Korea's low birthrate and shrinking military-age population risk cooling local demand.
It is competing to export submarines to Poland and Canada, a frigate to Thailand as well as knocking on the door in markets in the Middle East, South America, North Africa and Southeast Asia, to build up a sustained flow of orders that would bring foreign sales to 4 trillion won by 2030, Jeong said.
That would be about four times the size of its 1.05 trillion won of revenue in 2024.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
8 hours ago
- Arab News
Trump banned citizens of 12 countries from entering the US. Here's what to know
DAKAR, Senegal: President Donald Trump has banned citizens of 12 countries from entering the United States and restricted access for those from seven others, citing national security concerns in resurrecting and expanding a hallmark policy from his first term that will mostly affect people from Africa and the Middle East. The ban announced Wednesday applies to citizens of Afghanistan, Myanmar, Chad, the Republic of Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan and Yemen. The heightened restrictions apply to people from Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan and Venezuela who are outside the US and don't hold a valid visa. The policy takes effect Monday at 12:01 a.m. and does not have an end date. Here's what to know about the new rules: How Trump justified the ban Since returning to the White House, Trump has launched an unprecedented campaign of immigration enforcement that has pushed the limits of executive power and clashed with federal judges trying to restrain him. The travel ban stems from a Jan. 20 executive order Trump issued requiring the Department of State, Department of Homeland Security and the Director of National Intelligence to compile a report on 'hostile attitudes' toward the US The aim is to 'protect its citizens from aliens who intend to commit terrorist attacks, threaten our national security, espouse hateful ideology, or otherwise exploit the immigration laws for malevolent purposes,' the administration said. In a video posted on social media, Trump tied the new ban to a terrorist attack Sunday in Boulder, Colorado, saying it underscored the dangers posed by some visitors who overstay visas. The man charged in the attack is from Egypt, a country that is not on Trump's restricted list. US officials say he overstayed a tourist visa. Who is exempt from the ban, Which countries are affected Trump said nationals of countries included in the ban pose 'terrorism-related' and 'public-safety' risks, as well as risks of overstaying their visas. He also said some of these countries had 'deficient' screening and vetting or have historically refused to take back their citizens. His findings rely extensively on an annual Homeland Security report about tourists, businesspeople and students who overstay US visas and arrive by air or sea, singling out countries with high percentages of nationals who remain after their visas expired. 'We don't want them,' Trump said. The inclusion of Afghanistan angered some supporters who have worked to resettle its people. The ban makes exceptions for Afghans on special immigrant visas, who were generally the people who worked most closely with the US government during the two-decade war there. The list can be changed, the administration said in a document, if authorities in the designated countries make 'material improvements' to their own rules and procedures. New countries can be added 'as threats emerge around the world.' State Department guidance The State Department instructed US embassies and consulates on Friday not to revoke visas previously issued to people from the 12 countries listed in the ban. In a cable sent to all US diplomatic missions, the department said 'no action should be taken for issued visas which have already left the consular section' and that 'no visas issued prior to the effective date should be revoked pursuant to this proclamation.' However, visa applicants from affected countries whose applications have been approved but have not yet received their visas will be denied, according to the cable, which was signed by Secretary of State Marco Rubio. And, unless an applicant meets narrow criteria for an exemption to the ban, his or her application will be rejected starting on Monday. How the ban differs from 2017's Early in Trump's first term, he issued an executive order banning travel to the US by citizens of seven predominantly Muslim countries, including Iraq, Syria, Iran, Sudan, Libya, Somalia and Yemen. It was one of the most chaotic and confusing moments of his young presidency. Travelers from those nations were either barred from getting on flights to the US or detained at US airports after they landed. They included students and faculty, as well as businesspeople, tourists and people visiting friends and family. The order, often referred to as the 'Muslim ban' or the 'travel ban,' was retooled amid legal challenges until a version was upheld by the Supreme Court in 2018. That ban affected various categories of travelers and immigrants from Iran, Somalia, Yemen, Syria and Libya, plus North Koreans and some Venezuelan government officials and their families. Reactions to Trump's order Venezuela President Nicolás Maduro's government condemned the travel ban, characterizing it in a statement as a 'stigmatization and criminalization campaign' against Venezuelans. Chad President Mahamat Deby Itno said his country would suspend visas for US citizens in response to the ban. Aid and refugee resettlement groups also denounced it. 'This policy is not about national security — it is about sowing division and vilifying communities that are seeking safety and opportunity in the United States,' said Abby Maxman, president of Oxfam America. But reactions to the ban ran the gamut from anger to guarded relief and support. In Haiti, radio stations received a flurry of calls Thursday from angry listeners, including many who said they were Haitians living in the US and who accused Trump of being racist, noting that the people of many of the targeted countries are Black. Haitian-American Elvanize Louis-Juste, who was at the airport Sunday in Newark, New Jersey, awaiting a flight to her home state of Florida, said many Haitians wanting to come to the US are simply seeking to escape violence and unrest in their country. 'I have family in Haiti, so it's pretty upsetting to see and hear,' Louis-Juste, 23, said of the travel ban. 'I don't think it's a good thing. I think it's very upsetting.' William Lopez, a 75-year-old property investor who arrived from Cuba in 1967, supports the travel ban. 'These are people that come but don't want to work, they support the Cuban government, they support communism,' Lopez said at a restaurant near Little Havana in Miami. 'What the Trump administration is doing is perfectly good.'
Arab News
13 hours ago
- Arab News
National Guard troops arrive in Los Angeles on Trump's orders to quell immigration protests
LOS ANGELES: National Guard troops began arriving in Los Angeles early Sunday on orders from President Donald Trump in response to clashes in recent days between federal immigration authorities and protesters seeking to block them from carrying out deportations. Members of California's National Guard were seen staging early Sunday at the federal complex in downtown Los Angeles that includes the Metropolitan Detention Center, one of several sites that have seen confrontations involving hundreds of people in last two days. The troops included members of the 79th Infantry Brigade Combat Team, according to a social media post from the Department of Defense that showed dozens of National Guard members with long guns and an armored vehicle. Trump has said he is deploying 2,000 California National Guard troops to Los Angeles to quell the protests, which he called 'a form of rebellion.' Early Sunday, the deployment was limited to a small area in downtown Los Angeles. The protests have been relatively small and limited to a downtown section. The rest of the city of 4 million people is largely unaffected. Their arrival follows clashes near a Home Depot in the heavily Latino city of Paramount, south of Los Angeles. As protesters sought to block Border Patrol vehicles, with some hurling rocks and chunks of cement, federal agents unleashed tear gas, flash-bang explosives and pepper balls. Tensions were high after a series of sweeps by immigration authorities the previous day, as the weeklong tally of immigrant arrests in the city climbed past 100. A prominent union leader was arrested while protesting and accused of impeding law enforcement. On Sunday morning, Homeland Security Secretary Kristi Noem said the National Guard would 'keep peace and allow people to be able to protest but also to keep law and order.' In a signal of the administration's aggressive approach, Defense Secretary Pete Hegseth also threatened to deploy active-duty Marines 'if violence continues' in the region. The move came over the objections of Gov. Gavin Newsom, marking the first time in decades that a state's National Guard was activated without a request from its governor, according to the Brennan Center for Justice. Newsom, a Democrat, said Trump's decision to call in the National Guard was 'purposefully inflammatory.' He described Hegseth's threat to deploy Marines on American soil as 'deranged behavior.' Trump's order came after clashes in Paramount and neighboring Compton, where a car was set on fire. Protests continued into the evening in Paramount, with several hundred demonstrators gathered near a doughnut shop, and authorities holding up barbed wire to keep the crowd back. Crowds also gathered again outside federal buildings in downtown Los Angeles, including a detention center, where local police declared an unlawful assembly and began to arrest people.
Al Arabiya
18 hours ago
- Al Arabiya
Trump's travel ban on 12 countries goes into effect early Monday
US President Donald Trump's order banning citizens of 12 countries from entering the United States goes into effect at 12:01 am ET (0401 GMT) on Monday, a move the president promulgated to protect the country from 'foreign terrorists.' The countries affected by the latest travel ban are Afghanistan, Myanmar, Chad, Republic of the Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan and Yemen. The entry of people from seven other countries - Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan and Venezuela - will be partially restricted. Trump, a Republican, said the countries subject to the most severe restrictions were determined to harbor a 'large-scale presence of terrorists,' fail to cooperate on visa security, have an inability to verify travelers' identities, as well as inadequate record-keeping of criminal histories and high rates of visa overstays in the United States. He cited last Sunday's incident in Boulder, Colorado, in which an Egyptian national tossed a gasoline bomb into a crowd of pro-Israel demonstrators as an example of why the new curbs are needed. But Egypt is not part of the travel ban. The travel ban forms part of Trump's policy to restrict immigration into the United States and is reminiscent of a similar move in his first term when he barred travelers from seven Muslim-majority nations. Officials and residents in countries whose citizens will soon be banned expressed dismay and disbelief. Chad President Mahamat Idriss Deby Itno said he had instructed his government to stop granting visas to US citizens in response to Trump's action. Afghans who worked for the US or US-funded projects and were hoping to resettle in the US expressed fear that the travel ban would force them to return to their country, where they could face reprisal from the Taliban. Democratic US lawmakers also voiced concern about the policies. 'Trump's travel ban on citizens from over 12 countries is draconian and unconstitutional,' said US Representative Ro Khanna on social media late on Thursday. 'People have a right to seek asylum.'
