HD Hyundai has been confirmed to be in discussions with multiple companies regarding the acquisition of, or an equity investment in, a U.S. shipyard. The development comes just over a week after U.S. President Donald Trump signed a national security memorandum permitting foreign shipbuilders to construct U.S. Navy vessels, signaling that competition among South Korean shipbuilders to secure a U.S. manufacturing foothold is now intensifying in earnest.
According to shipbuilding industry sources on the 21st, HD Hyundai is continuing negotiations with several companies regarding the acquisition of a U.S.-based shipyard. An HD Hyundai official stated, “It is true that we are reviewing and discussing the acquisition of, or an equity investment in, a U.S. shipyard, but nothing has been finalized yet,” adding, “HD Hyundai is exploring various options to ensure the successful advancement of MASGA (the Korea-U.S. shipbuilding cooperation project).”
The negotiations are widely seen as a direct response to the national security memorandum signed by President Trump on the 13th. The memorandum allows foreign shipbuilders that have made substantial and sustained investments in U.S. shipyards to build up to two U.S. Navy vessels at shipyards in their home country. Eligible vessel categories include surface combatants, maritime replenishment tankers, and roll-on/roll-off (Ro-Ro) transport ships.
The key condition is the establishment of a new shipyard in the United States or the acquisition of ownership or a majority equity stake in an existing U.S. shipyard. In other words, without holding at least a majority stake in a U.S. shipyard, participation in U.S. Navy vessel construction is not possible. Currently, Hanwha Ocean is the only South Korean shipbuilder that meets this requirement. Hanwha Ocean, together with Hanwha Systems, acquired the Philly Shipyard in Philadelphia in December 2024, and has recently been pursuing the acquisition of Austal USA, the American subsidiary of Australian shipbuilding and defense company Austal.
HD Hyundai does not currently own a U.S. shipyard, but it has been expanding cooperation with local companies based on its shipbuilding technology. The company has been broadening its collaboration with Huntington Ingalls Industries (HII), the largest U.S. naval shipbuilder, in the areas of warship construction and production technology. In July, HD Korea Shipbuilding & Offshore Engineering, HD Hyundai’s intermediate holding company, signed a memorandum of understanding with U.S. shipbuilder Fraser Industries for shipyard modernization cooperation.
HD Korea Shipbuilding & Offshore Engineering established HD Hyundai USA, a U.S.-based subsidiary, in the first half of this year, initiating preliminary preparations for a U.S. shipyard acquisition. The subsidiary is expected to handle major U.S. investment activities going forward, including the acquisition of a U.S. shipyard. In August of last year, HD Hyundai signed a memorandum of understanding with global private equity firm Cerberus Capital and the Korea Development Bank to establish a joint Korea-U.S. shipbuilding industry investment program, committing to investments related to U.S. shipyard acquisitions and modernization.
Industry observers express expectations that HD Hyundai, having prepared for a U.S. shipyard acquisition over an extended period, will soon produce tangible results. An industry source said, “As HD Hyundai accelerates its push to acquire a U.S. shipyard, the outlines of an acquisition should become visible within this year,” adding, “If HD Hyundai acquires a U.S. shipyard, order expansion linked to MASGA is expected to gain full momentum.”
With Korea-U.S. shipbuilding cooperation projected to continue expanding, HD Hyundai’s pursuit of a U.S. shipyard acquisition is interpreted as a strategic move to establish a direct beneficiary position within the MASGA framework. Securing a U.S. shipyard would not only qualify the company to participate in U.S. Navy vessel construction but also position it to proactively capture order opportunities arising from the future modernization of the U.S. shipbuilding industry.