South Korea’s HD Hyundai Heavy Industries, the world’s largest shipbuilder by order volume, is considering the purchase of an American shipyard. This was confirmed by Woo-man Jeong, head of the company’s naval and special ship division.
According to Jeong, by 2035 Hyundai expects to generate around 3 trillion won (USD 2.2 billion) in annual revenue from building naval vessels for the U.S. Navy. To achieve this, the company is exploring establishing a production base in the United States, which would enable participation in U.S. defense projects.
Why is the U.S. opening its shipbuilding market?
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Once a global leader during World War II, U.S. shipbuilding today accounts for just 0.04% of the global market(UNCTAD data).
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China and South Korea together control 83% of global commercial shipbuilding.
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The U.S. Navy faces a shortage of shipbuilding capacity as China rapidly expands its naval power.
Competitors and investments
Some U.S. shipyards remain active: Philly Shipyard (acquired by Hanwha Ocean), General Dynamics, and Huntington Ingalls Industries. However, their capacity is limited.
In July, Seoul pledged USD 150 billion in U.S. shipbuilding as part of a larger USD 350 billion investment package in American projects. In August, HD Hyundai also announced a merger with its subsidiary HD Hyundai Mipo to expand its naval shipbuilding business and support joint U.S.–Korea shipbuilding initiatives.
Challenges for Hyundai
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Workforce: shortage of skilled labor and high employee turnover at U.S. shipyards. Jeong estimates training could take 3–5 years.
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Immigration policy: visa regulations need to be improved to allow Korean instructors to work in the U.S.
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Legislation: The Jones Act (1920) and the Byrnes-Tollefson Amendment restrict foreign yards from building ships for the U.S.
Outlook
Despite the hurdles, HD Hyundai sees the U.S. naval shipbuilding market as highly attractive. The company recently showcased its efficiency by launching an 8,200-ton Aegis destroyer at its Ulsan yard in just 18 months — much faster than typical U.S. timelines.
“The undeniable reality is that if you want to do business with the U.S., you have to do it in the U.S.,” Jeong emphasized.
