South Korea’s HD Hyundai Heavy Industries is holding discussions with several firms about acquiring a U.S. shipyard as part of its strategy to boost warship construction for the U.S. Navy. The plan aligns with Washington’s push to revive domestic shipbuilding capacity amid rising security competition with China.
Woo-maan Jeong, head of planning and management for HD Hyundai’s naval and special ship unit, said the company aims to secure about 3 trillion won ($2.2 billion) in annual sales from the U.S. Navy by 2035. “It seems clear that we need to establish a manufacturing base in the U.S. at some point,” Jeong noted, without disclosing which companies are involved or the scale of potential investment.
The U.S. once led the global shipbuilding sector but accounted for just 0.04% of output in 2024, according to UN data. Today, China and South Korea dominate the market with 83% of worldwide commercial shipbuilding. Existing American players include Philly Shipyard, acquired in 2024 by South Korea’s Hanwha Ocean, Huntington Ingalls Industries, and General Dynamics’ NASSCO yard.
HD Hyundai highlighted labor shortages and restrictive visa policies as hurdles to expanding production in the U.S., warning that worker training could take three to five years. The company also stressed that closer industrial ties are crucial for narrowing the U.S.–China naval capability gap.
Earlier this year, South Korea pledged $150 billion in investment for U.S. shipbuilding projects, forming part of a wider $350 billion commitment linked to tariff negotiations. HD Hyundai also recently merged with affiliate HD Hyundai Mipo to strengthen its defense portfolio.
On the same day, the company launched an 8,200-metric-ton Aegis destroyer for the South Korean Navy, scheduled for delivery in 2026, positioning the vessel as a “symbol of U.S.–Korea cooperation.”
