Azernews.Az

by Alimat Aliyeva

South Korean company Hyundai Heavy Industries is currently in negotiations with several firms to acquire an American shipyard, Azernews reports.

This was revealed by Wu Man Chong, head of the planning and management department for naval and special vessels at HD Hyundai.

Industry experts note that Hyundai aims to capitalize on former President Donald Trump's push to revive the struggling American shipbuilding industry.

According to Wu Man Chong, Hyundai, the world’s largest shipbuilder by order volume, plans to generate annual revenues of 3 trillion won (approximately $2.2 billion) from constructing warships for the U.S. Navy by 2035.

The United Nations Conference on Trade and Development highlights that in 2024, American shipyards—once the global leader in production capacity during World War II—accounted for a mere 0.04% of the worldwide shipbuilding market. Meanwhile, China and South Korea dominate, together representing 83% of the global commercial shipbuilding industry.

In a significant move last July, South Korea pledged $150 billion in investments specifically for the U.S. shipbuilding sector, as part of a broader $350 billion commitment to American projects tied to tariff reduction negotiations.

This deal not only reflects Hyundai’s ambition to expand its footprint in the lucrative defense sector but also marks a rare moment of industrial collaboration amid growing geopolitical tensions in the Indo-Pacific region. The acquisition could potentially strengthen U.S.-South Korea ties, combining cutting-edge South Korean shipbuilding technology with the strategic demands of the U.S. Navy.