Washington: U.S. President Donald Trump signed a national security memorandum permitting foreign shipbuilders to construct up to two ships in their parent shipyards for delivery to the United States. This move is part of a broader strategy to rebuild the U.S. Navy and bolster the country's shipbuilding industrial base.
According to Yonhap News Agency, the memorandum aligns with efforts to enhance shipbuilding cooperation with South Korea, which has pledged to invest $150 billion in the U.S. shipbuilding sector. This is part of a larger $350 billion investment commitment under a bilateral trade and investment agreement finalized last year.
The White House outlined that foreign shipbuilders who make significant investments in U.S. shipyards and cultivate an American workforce will be temporarily allowed to build up to two ships in their parent shipyards. These ships will address immediate needs while future ships will be constructed in revitalized American facilities.
Hanwha, a South Korean conglomerate, complies with the memorandum's requirements as it acquired Philly Shipyard in Philadelphia in December 2024. The memorandum mandates that foreign suppliers either establish a new shipyard or take a majority stake in an existing U.S. shipyard.
The Pentagon is directed to pursue increased investments in the American shipbuilding industrial base, drawing inspiration from the "Finland model." This involves acquiring vessels from allied foreign shipyards before transitioning production to the U.S. with foreign backing.
Additionally, the memorandum calls for the creation of a fifth naval shipyard, the first in over 80 years, to enhance U.S. submarine and aircraft carrier repair capabilities. Last month, the White House Office of Management and Budget presented a legislative proposal to Congress, highlighting a priority to authorize the U.S. Navy to contract two combat ships and two non-combat auxiliary vessels in foreign shipyards.