Shares in South Korea’s Hanwha Ocean Co and Italy’s Fincantieri SpA rose after US President Donald Trump signed a directive creating a pathway for qualified foreign shipbuilders to construct certain US Navy vessels at overseas yards.
Hanwha Ocean Co shares climbed 5.6% on Friday, while Fincantieri SpA gained 3.2%. Both companies have major shipyard operations in the United States.
Trump signed the National Security Presidential Memorandum, “Rebuilding the United States Navy and America’s Shipbuilding Industrial Base,” on Thursday. Under the model, qualifying foreign shipbuilders could initially construct up to two vessels at their parent yards overseas before subsequent production shifts to the United States.
To qualify, foreign shipbuilders would have to build a new US shipyard or acquire a majority stake in an existing one, hire and train American workers, transfer proprietary shipbuilding techniques and establish a US supply chain.
The policy could apply to three vessel categories: surface combatants, consolidated cargo replenishment tankers and roll-on/roll-off vessels. Specific designs have not yet been selected and are to be determined through new competitive acquisition programs.
The memorandum allows the administration to waive the general prohibition on building US Armed Forces vessels in foreign shipyards for qualifying projects. Congress must be notified of each national security determination, and contracts cannot be awarded until 30 days after lawmakers receive notification.
The approach follows an October 2025 US-Finland agreement covering icebreaker construction for the US Coast Guard. Bollinger Shipyards is partnering with Rauma Marine Constructions to build the first two Arctic Security Cutters in Finland before production moves to Louisiana. Davie is taking a similar approach, with its first two cutters to be built at Helsinki Shipyard before production shifts to a new facility in Texas.
Hanwha acquired Philly Shipyard in 2024 and has pledged $5 billion to expand the Pennsylvania yard. The investment is part of South Korea’s broader commitments under a trade deal with Washington.
A Hanwha Defense USA spokesperson said the company was reviewing the details of the memorandum.
Bryan Clark, a senior fellow at the Hudson Institute, identified Hanwha as the frontrunner under the new policy, citing South Korean government investment in US shipbuilding. He said the policy was more likely to initially produce tankers and roll-on/roll-off vessels than warships because of the cost and complexity of adapting warship designs to the US supply chain.
Fincantieri, Europe’s largest shipbuilder, has invested more than $800 million in its US shipyards over the past decade, including Fincantieri Marinette Marine in Wisconsin and Fincantieri Bay Shipbuilding.
The company recently secured a $30 million US Navy contract for early work on Medium Landing Ship vessels. The program could ultimately cover 35 vessels.
The policy also affects Hanwha’s non-binding bid for Austal’s US operations. Austal shares rose 5.6% on Friday. Clark said a sale could reduce the Australian parent company’s opportunity to build two vessels in Australia under the new rules.
The memorandum also calls for the establishment of a fifth public US Navy shipyard. Within 120 days, the administration is seeking a plan to expand submarine and aircraft carrier maintenance capacity using private-sector capabilities and the proposed public yard.
Potential locations near the Pacific Fleet are to be considered in the continental United States, Alaska, Hawaii and US territories. The plan could include up to three new dry docks capable of handling current and future submarine classes.
The Shipbuilders Council of America opposed the overseas construction provision, arguing that building vessels abroad would divert demand, jobs and industrial capability away from US shipyards.
