HD Hyundai, Hanwha in fierce competition to build ships in US

Edison Chouest Offshore CEO Dino Chouest, front row center, inspects HD Hyundai Heavy Industries' shipyard in Ulsan, Wednesday. Courtesy of HD Hyundai

Competition is heating up between HD Hyundai and Hanwha to take the initiative in the construction of vessels at U.S. shipyards amid the Donald Trump administration’s ambition to rebuild the country’s shipbuilding industry and curb China’s maritime expansion.

HD Hyundai said Wednesday that officials from Edison Chouest Offshore (ECO) toured its headquarters and shipyards this week to discuss detailed plans for the joint construction of container vessels at the U.S. company’s shipyards.

ECO, which operates 18 commercial shipyards in the U.S., signed a partnership with HD Hyundai last month to jointly build medium-sized container vessels at the U.S. firm’s shipyards by 2028 and expand cooperation to include port cranes, a sector with heightened security considerations.

HD Hyundai also dispatched a team of more than 10 experts to one of ECO’s shipyards last month to inspect facilities and provide consultation to enhance productivity.

“HD Hyundai fully supports efforts to revitalize the U.S. shipbuilding industry,” HD Hyundai Executive Vice Chairman Chung Ki-sun said during his meeting with ECO CEO Dino Chouest.

“The joint shipbuilding project between the two companies in the United States will serve as an excellent example of Korea-U.S. cooperation in the shipbuilding sector,” Chung added.

A national security multi-mission vessel is under construction at Hanwha Philly Shipyard in Philadelphia, Pa., July 16. Courtesy of Hanwha Ocean

Hanwha said Tuesday that its shipping affiliate placed an order with the conglomerate-owned shipyard in Philadelphia to build a liquefied natural gas (LNG) container.

Although most construction of the vessel will take place at Hanwha Ocean’s Geoje shipyard in South Gyeongsang Province, the latest order is a preparatory step for Hanwha Philly Shipyard to build high-value-added vessels in the future.

“Hanwha Philly Shipyard will mainly handle certification and compliance required by the U.S. Coast Guard, including meeting U.S. maritime safety regulations for flag registration,” a Hanwha Ocean official said.

“This order allows Hanwha Philly Shipyard to elevate its technological capabilities by entering the highly specialized LNG carrier sector, while Hanwha Ocean gains a strategic foothold to apply its shipbuilding technology within the U.S. market.”

The company added that this order will help it contribute to revitalizing the U.S. shipbuilding industry.

A longstanding labor shortage has barred U.S. shipyards from securing the technology to build high-value-added vessels, so the Trump administration has repeatedly courted Korean shipbuilders, relying on them for the revival of American shipbuilding. As a result, shipbuilding cooperation has been mentioned as one of Korea’s bargaining chips in negotiations to lower U.S. tariffs.