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Shipbuilding rivalry heats up in US

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Democratic Sen. Mark Kelly of Arizona, center, listens to Hanwha Ocean officials during his visit to Hanwha Philly Shipyard in Philadelphia, Pa., Tuesday (local time). Courtesy of Mark Kelly

Democratic Sen. Mark Kelly of Arizona, center, listens to Hanwha Ocean officials during his visit to Hanwha Philly Shipyard in Philadelphia, Pa., Tuesday (local time). Courtesy of Mark Kelly

Hanwha, HD Hyundai keep pace with Trump's policy
By Park Jae-hyuk

Korea's two rival shipbuilders made respective efforts this week to expand their presence in the U.S. market as the Donald Trump administration seeks to rely on allied shipyards to curb China's growing dominance in the global marine industry.

On Tuesday (local time), Hanwha Ocean invited Sen. Mark Kelly of Arizona and Rep. Mary Gay Scanlon of Pennsylvania, both Democrats, to Philly Shipyard in Philadelphia, which has been under the Korean firm's control since its acquisition in December.

Kelly proposed the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act during the 118th U.S. Congress between 2023 and 2024, aiming to expand the U.S. flag international fleet by 250 ships in 10 years through cooperation with allies. Scanlon represents the district accommodating the shipyard.

Although Kelly's bill with bipartisan and bicameral support was not passed until the end of the previous Congress last year, Trump's plan to revitalize the U.S. shipbuilding industry in collaboration with allied shipyards has improved prospects for Korean shipbuilders.

"With Hanwha taking over control and the investments that they're making here in Philadelphia to build more ships, [we see this as] an incredibly positive thing," Kelly said.

The senator emphasized the need for cooperation with Korea to construct both naval and commercial vessels, saying that his country pales in comparison to China when it comes to its merchant marine fleet.

Putting on a helmet with Hanwha's logo, Kelly met workers and apprentices at the shipyard to express his willingness to create decent jobs.

Hanwha Philly Shipyard CEO David Kim appreciated Kelly's efforts in proposing the SHIPS for America Act.

"We think it's great, not just for our industry and the company, but for the country — for the national security implications it has," Kim said.

Glen Kim, center, director of naval affairs and strategy development at HD Hyundai Heavy Industries, speaks during a panel discussion hosted by the Hudson Institute in Washington, Wednesday (local time). Screenshot from the Hudson Institute's YouTube

Glen Kim, center, director of naval affairs and strategy development at HD Hyundai Heavy Industries, speaks during a panel discussion hosted by the Hudson Institute in Washington, Wednesday (local time). Screenshot from the Hudson Institute's YouTube

A day after the U.S. politicians' tour of Hanwha's shipyard, HD Hyundai Heavy Industries (HHI) joined a panel discussion on strengthening the construction and repair of the country's naval vessels, which was hosted by the Hudson Institute, an American conservative think tank based in Washington.

Glen Kim, HD HHI's director of naval affairs and strategy development, introduced his company's preparedness to support the U.S. Navy, promising that the Korean firm will create jobs through its collaboration with American universities.

"In the long term, HD Hyundai is actively pursuing investment opportunities in the U.S. to bring more capacity in American jobs in the U.S. defense industrial base," he said.

Earlier this week, Chung Mong-joon, founder and honorary chairman of the Asan Institute for Policy Studies, the largest shareholder of HD Hyundai and the father of the company's CEO, Ki-sun, welcomed Trump's interest in cooperating with Korea on shipbuilding.

"This will help [make] the U.S. naval fleet stronger. South Korea has much to contribute to these collective efforts," he said Monday (local time) in Washington, during a celebration of his donation of $7.5 million to the School of Advanced International Studies at Johns Hopkins University.

He contributed the endowment to his alma mater to establish the MJ Chung Distinguished Chair in Security Studies, supporting research and education on Korean Peninsula affairs and North Korean nuclear issues.

On Wednesday, both CEOs of Hanwha Ocean and HD HHI participated in the domestic shipbuilders' meeting with Rep. Lee Jae-myung, leader of the main opposition Democratic Party of Korea, which was held to discuss the industry's strategies under the Trump presidency.

Park Jae-hyuk pjh@koreatimes.co.kr


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