Hanwha Ocean shares rose over 5% during trading on news that President Donald Trump signed a memorandum allowing the overseas construction of U.S. Navy vessels. This development has heightened expectations for Hanwha Ocean, which owns shipyards in the United States.
As of 1:52 PM on August 14, Hanwha Ocean's stock was trading at 95,300 won, up 4,600 won (5.07%) from the previous trading day, according to the Korea Exchange.
On August 13, Trump signed a memorandum permitting foreign shipbuilders to construct U.S. Navy vessels abroad, lifting previous restrictions on overseas construction of Navy ships.
The types of vessels eligible for overseas construction include surface combatants, integrated cargo supply tankers, and roll-on/roll-off ships. Each category will allow for the construction of two vessels at foreign shipyards.
Market analysts are focusing on the potential expansion of Hanwha Ocean's U.S. Navy shipbuilding business as a result of this policy change. In 2024, Hanwha Ocean, in partnership with Hanwha Systems, invested approximately $100 million to acquire the Philadelphia shipyard. Last year, the company also announced plans to invest an additional $5 billion in the Philadelphia facility.
Hanwha Ocean has been steadily expanding its U.S. Navy-related projects. In March, the company participated in the U.S. Navy's next-generation logistics support ship program, and last month, it was selected for the missile measurement vessel construction project by the U.S. Missile Defense Agency.
As the U.S. seeks to strengthen its naval capabilities through increased collaboration with allied shipbuilders, the recent allowance for overseas construction is expected to further enhance Hanwha Ocean's prospects in the U.S. defense and shipbuilding markets.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.