Latest news with #HanwhaOcean
Korea Herald
3 days ago
- Business
- Korea Herald
Korean shipbuilders' global ambitions depend on skilled labor, local support
Korea's top shipbuilders are eyeing expansion in the United States and India to capture rising demand for naval and strategic shipbuilding, but their plans hinge on securing skilled workers and government support to avoid the pitfalls that plagued earlier overseas ventures. The country's two largest players, HD Hyundai and Hanwha Ocean, are pressing ahead with new partnerships and investments. HD Hyundai has teamed up with India's state-run Cochin Shipyard and US shipbuilders Huntington Ingalls and Edison Chouest Offshore. Meanwhile, Hanwha Ocean, backed by an 800 billion won ($582 million) rights offering from its parent Hanwha Aerospace, is pursuing additional overseas opportunities following its acquisition last year of Philly Shipyard in Pennsylvania. Both companies aim to secure early access to surging demand for naval and commercial vessels, especially as countries seek to counter China's growing dominance in global shipbuilding. Experts, however, warned that significant challenges remain in human resources. Despite the appetite for expansion, neither the US nor India currently has the workforce or infrastructure to build large commercial or naval vessels at the scale Korean firms are accustomed to. 'Even if they operate a yard overseas, the first challenge they will face is a lack of process know-how and skilled workers,' said Kim Myung-hyun, an ocean engineering professor at Pusan National University. The US builds only about five commercial vessels a year, compared with a global capacity of roughly 1,300. India accounts for less than 1 percent of the world's shipbuilding output. Such limited domestic industries mean both countries lack not only experienced shipbuilders but also local suppliers of essential components, which can constitute around 60 percent of a vessel's value. 'Ship manufacturing, where adapting to diverse orders is key, still relies heavily on skilled labor trained on-site,' said an industry veteran. 'Even with a shared language and culture, training new workers takes time, so imagine how much harder it was overseas.' Without sufficient skilled labor and local supply chains, Korean shipbuilders risk relying on components and personnel from overseas, undermining the cost advantages of overseas production and potentially adding significant expenses. In response, Korean firms are looking to governments in Washington and New Delhi for support to help bridge these gaps. US President Donald Trump announced in March potential tax exemptions and plans to establish a special White House office dedicated to shipbuilding. India, meanwhile, is investing $2.2 billion in its shipbuilding sector to bolster capacity and competitiveness. Korean companies view these measures as essential for overcoming local constraints and aligning shipbuilding projects with national security and naval expansion goals in both countries. Yet experts warn that government policies are still at an early stage and uncertainties remain. 'For instance, it remains unclear how much of the demand for US naval vessel construction and maintenance will go to Korean shipbuilders, even if they invest in the US, or what specific roles they might be assigned,' said Yang Jong-seo, a researcher at the Overseas Economy Institute of the Korea Export-Import Bank. 'A range of issues, including regulations, the potential role of Korean workers and the scope of local participation, must be clarified. This may require formal talks between governments to ensure Korean firms are not disadvantaged in negotiations.' Despite these plans, the shadow of past failures still looms large. In the 2010s, Korean shipbuilders suffered heavy losses in overseas ventures. Daewoo Shipbuilding & Marine Engineering, now Hanwha Ocean, sold its Mangalia yard in Romania for 29 billion won — about half its initial investment. Hanjin Heavy Industries & Construction and STX Offshore & Shipbuilding, once ranked among the world's top 10 shipbuilders, collapsed under losses at overseas yards in Subic, the Philippines, and Dalian, China. The central lesson is that future success abroad will depend not only on political partnerships but also on building skilled local workforces and stable supply networks, according to experts. 'Relying solely on cheap labor, the yards struggled to compete with China's even lower-cost, government-backed offerings,' the industry veteran said.
Nikkei Asia
03-07-2025
- Business
- Nikkei Asia
South Korea shipbuilders catch rising tide of US Navy business
Hanwha Ocean executives and U.S. Navy officials observe maintenance on the USNS Wally Schirra in October. (Hanhwa Ocean) NAMI MATSUURA SEOUL -- South Korea's shipbuilders are wining U.S. deals with government encouragement, aiming to chip away at China's global dominance by leveraging the alliance between Washington and Seoul as well as the Trump administration's push to revive the American industry. HD Hyundai Heavy Industries, South Korea's largest shipbuilder, last month announced a partnership with a company in the U.S.-based Edison Chouest Offshore group. The companies plan to build container ships that can run partly on liquefied natural gas, hoping to begin deliveries by 2028.
Yahoo
01-07-2025
- Business
- Yahoo
Hanwha Ocean secures AIP for cybersecurity solution for FPSO units
Hanwha Ocean has secured approval in principle (AIP) from the American Bureau of Shipping (ABS) for its new cybersecurity system for floating production storage and offloading (FPSO) units. This solution aims to protect critical infrastructure and operations, enhancing security for offshore facilities. In collaboration with SIGA Data Security, Hanwha Ocean designed an operational technology (OT) cybersecurity solution specifically to defend vital OT systems against cyber threats, thereby improving the overall cyber resilience of FPSO units. Hanwha Ocean Offshore president Philippe Levy said: 'Receiving this AIP from ABS marks a significant step forward for Hanwha Ocean. It underscores our commitment to innovation and operational resilience in offshore environments. 'Our strategic partnership with ABS and SIGA enables us to offer validated, leading-edge cybersecurity solutions that provide enhanced process-level visibility, real-time threat detection, and effective remote operational oversight, all fully aligned with stringent offshore industry compliance standards and segmentation architectures.' The AIP was granted following ABS's thorough design reviews, ensuring compliance with class and statutory requirements. This cybersecurity initiative is part of a multi-year offshore technology collaboration agreement between ABS and Hanwha Ocean, focusing on innovative projects in sustainability, digitalisation, artificial intelligence, and operational technology cybersecurity. ABS Global Offshore senior vice president Miguel Hernandez said: 'This is an exciting achievement for both organisations. Together, under this agreement, ABS and Hanwha Ocean are using our collective resources and extensive experience to address challenges unique to offshore energy production. 'As connectivity improves for offshore assets, the cyber risks increase. This new OT solution promises to help operators address vulnerabilities in their critical operations systems.' In February this year, Hanwha Power Systems and Hanwha Ocean partnered with Baker Hughes to develop ammonia gas turbines for ships. Announced at the Baker Hughes Annual Meeting in Florence, Italy, the collaboration aims to create low-carbon propulsion systems by 2028. "Hanwha Ocean secures AIP for cybersecurity solution for FPSO units" was originally created and published by Ship Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
27-06-2025
- Business
- Reuters
Hanwha Ocean offers Poland financing deal for submarines
WARSAW, June 27 (Reuters) - Hanwha Ocean ( opens new tab has added a comprehensive financing deal to its proposal to sell Poland submarines, the South Korean shipbuilder said on Friday, as it battles rival European bidders. Poland is seeking to buy three submarines under its "Orka" programme as part of an expansion of its military to counter what it says is a growing threat from Russia following Moscow's 2022 invasion of neighbouring Ukraine. Polish media have reported that offers from fellow-NATO and European Union members Germany, Italy and Sweden were frontrunners in the multibillion-dollar programme, with a decision expected later this year. Hanwha Ocean is offering its KSS-III Batch-2 vessels, with the first delivery possible early next decade, and an older KSS-I submarine, currently used by the South Korean navy, as an interim solution or "gap-filler" for the Polish navy to start training on as soon as 2028. "Our reinforced proposal is built on three core areas: providing robust financial support, helping enhance Poland's defence capabilities, and deepening industrial cooperation with Polish partners," Jaemin Kim, Orka programme manager at Hanwha Ocean, told a press briefing in Warsaw. "We know that financing is a critical enabler of the Orka programme, and that is why we are already working with the new Korean government, which is also strongly committed to supporting defence exports, to prepare a financing package tailored for Poland," he added. The commercial bank financing offer, the result of an international tender, is independent of EU funds, Hanwha Ocean said in a press release, adding that in parallel, long-term financial instruments supported by the South Korean government were also being considered. "Hanwha Ocean can deliver the first (KSS-III) submarine within six years of contract signing, one of the shortest timelines in the industry today," Kim added. "Our base proposal envisions delivering each follow-on submarine every 12 to 18 months. But, however, if the Polish Navy prefers, we can accelerate the delivery of the second and third submarines, potentially reducing the total programme timeline."
France 24
22-06-2025
- Business
- France 24
South Korea counts on shipbuilding to ease US tariff woes
Already hit by sector levies on steel and car exports, Seoul is laser-focused on negotiations over a 25 percent country-specific tariff that has been suspended until July 8. AFP takes a look at what's going on: Why shipbuilding? In the 1970s, South Korea's military leader president Park Chung-hee accelerated the country's heavy industry, designating sectors such as steel and shipbuilding "strategically important" and rolling out state subsidies. At the same time, POSCO was founded -- now one of the world's largest steel producers -- and conglomerate Hyundai built its shipyard in southeastern Ulsan, which started to grow rapidly. European rivals struggled to keep pace. Sweden's Kockums Shipyard filed for bankruptcy in 1987 -- and in a symbolic shift of global shipbuilding power, Hyundai acquired its 140-metre (460-foot) Goliath crane for one dollar. It now towers over southern Ulsan. In the 1990s and 2000s, South Korean shipbuilders such as Hyundai Heavy Industries and Samsung Heavy Industries ramped up investment in research and development, backed by generous government subsidies. The country secured a competitive edge in high-value-added vessels, including LNG carriers, very large crude carriers, and offshore platforms. Now, South Korea ranks as the world's second-largest shipbuilding nation, trailing only behind China. Is it important? South Korea's exports hit a record high in 2024, with analysts pointing to shipbuilding as one of the key drivers. The sector accounted for nearly four percent of total exports and grew by almost 20 percent from the previous year -- reaching $25.6 billion. Shipbuilding directly employs around 120,000 workers -- roughly one percent of the country's total workforce -- with indirect employment significantly higher in industrial hubs like Ulsan. Industry data shows so far this year, new orders have exceeded 13 trillion won ($9.4 billion). In March, Hanwha Ocean secured a landmark $1.6 billion contract to build LNG carriers for Taiwan's Evergreen Marine, one of the largest single orders in the sector this year. - Why is it a 'bargaining chip'? - Trump has showed "significant interest in South Korea-US shipbuilding cooperation," said South Korea's trade, industry and energy minister Ahn Duk-geun in April. Like the Europeans, the US shipbuilding industry has lagged behind South Korea and China, and as a result, the sector is seen as a "highly important bargaining chip in trade negotiations," he added. At an APEC finance ministers' meeting in South Korea in May, US Trade Representative Jamieson Greer met Chung Ki-sun, vice chairman of HD Hyundai, the country's largest shipbuilder, before he met Seoul's top officials. "South Korea's shipbuilding and defence industries see a window of opportunity," said Kim Dae-jong, a professor at Sejong University. How does it help the US? Greer also met with the CEO of Hanwha Ocean, the first non-American company authorised to carry out a dry-dock maintenance of a US Navy vessel. The move last September was seen as significant as it signalled that Washington sees South Korea, where it already has 28,000 US troops stationed, as a strategic defence hub. With worries growing about China's expanding naval fleet and potential conflict in the Taiwan Strait, the US has begun seeking reliable overseas shipyards to support its operations in the Asia-Pacific region. The global market for ship maintenance, repair, and overhaul is projected to exceed $60 billion annually, according to industry estimates. Any problems? Despite multi-billion-dollar contracts, data suggests South Korea's shipbuilding industry is losing ground in the global race. China dominates with South Korea's market share dropping, according to industry data. Demand for eco-friendly vessels is rising, and the government need to overhaul regulations "to support the development of next-generation eco-friendly vessels," Rhee Shin-hyung, a professor at Seoul National University, told AFP. South Korea's woeful demographics also make staffing hard. In Geoje -– home to Samsung Heavy Industries -– the number of residents in their 20s and 30s has nearly halved in recent years. Orders are down in 2025 which hints that "the shipbuilding boom may end sooner than the market anticipated," warned Rhee. Global ship orders between January and April fell by almost half the volume recorded during the same period last year. Shipbuilders have been enjoying a "supercycle" but unfortunately the "peak is expected to be lower and the boom shorter-lived compared to the past," Nam Chul, vice president at HD Hyundai Heavy Industries, told AFP.
