US-focused collaborative effort initiated by Korean shipbuilders to strengthen industry relationships
The Korean shipbuilders HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries have formed a joint task force to support the "Make American Shipbuilding Great Again" (MASGA) initiative. This collaboration is part of a larger $350 billion Korea-US trade agreement package, which includes a reduction in US tariffs on Korean ship imports from 25% to 15%.
The task force, coordinated by the Korea Offshore & Shipbuilding Association, consists of one employee and one executive from each of the three companies. Their main objective is to support the government's MASGA project, with discussions focusing on investments in and strengthening ties with the US shipbuilding sector. Detailed discussions on the MASGA project are set to begin in mid-August.
US Commerce Secretary Howard Lutnick praised the MASGA cap as a "great idea" during a meeting with Korea's Industry Minister Kim Jung-kwan, indicating the initiative's potential impact on the US shipbuilding industry.
The plans under this initiative focus on infrastructure development, workforce training, supply chain localization, ship construction, maintenance cooperation, and technology partnerships. The Korean government's $150 billion fund, making up 43 percent of the total, is primarily intended for shipyard construction, workforce training, shipbuilding, and maintenance, repair, and operations (MRO).
One of the specific investment plans includes building new shipyards in the United States to expand US shipbuilding infrastructure. Another plan involves training shipbuilding personnel to enhance skills and workforce capability in the US. The initiative also aims to rebuild related supply chains within the American shipbuilding ecosystem to foster domestic production and reduce reliance on imports.
HD Hyundai is forging partnerships with US shipbuilders, intending to jointly build LNG dual-fuel container ships with Edison Chouest Offshore and share its shipbuilding know-how with Huntington Ingalls. Hanwha Ocean, one of Korea's shipbuilders, acquired Philly Shipyard for $100 million last year and plans to increase its annual shipbuilding capacity to up to 15 vessels by 2035.
The large-scale shipbuilding fund played a crucial role in reducing the threatened 25 percent blanket tariff on Korean goods to 15 percent. The MASGA project is aimed at revitalizing the US shipbuilding industry, with Samsung Heavy Industries discussing cooperative measures with its US counterparts.
The Korean government's extensive research and proposals for its shipbuilding sector may have surprised the US during trade negotiations, according to Kim Yong-beom, the presidential chief of staff for policy. Kim Yong-beom also revealed that the MASGA cap, featuring the MASGA logo and US and Korean flags, was designed and brought to the US by the Korean government.
The MASGA initiative is not just about building ships, but also about creating jobs and stimulating economic growth in the US. Hanwha Ocean is actively engaged in local facility investments, job creation, and technology transfers in the US. The partnerships formed under the MASGA initiative, such as HD Hyundai's joint shipbuilding project with Edison Chouest Offshore, also include technology transfer and plans to expand cooperation to related sectors such as port cranes.
This collaboration between Korean and US shipbuilders is a significant step towards revitalizing the US shipbuilding industry and strengthening economic ties between the two countries. The task force formed by the three Korean shipbuilders will act as a channel to collect industry needs and facilitate dialogue with both the South Korean and US governments, ultimately evolving into a formal Korea-US shipbuilding alliance overseeing the MASGA initiative.
- The collaboration between HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries, as part of the MASGA initiative, extends not only to building ships but also to creating jobs and stimulating economic growth through technology transfer and local facility investments in the United States.
- The joint task force, established by the Korea Offshore & Shipbuilding Association, aims to support the US shipbuilding sector by focusing on investments in infrastructure, workforce training, and technology partnerships, with discussions set to begin in mid-August.
- The MASGA initiative, designed to revitalize the US shipbuilding industry, is part of a larger $350 billion Korea-US trade agreement package, which includes reductions in US tariffs on Korean ship imports and extensive investments in US shipyard construction, workforce training, and related sectors such as port cranes.
