President Lee visits Philly Shipyard, says Korean and U.S. shipbuilding industries will grow together

PHILADELPHIA — President Lee Jae Myung toured Hanwha Philly Shipyard in Pennsylvania on August 26 in a visit symbolic of the burgeoning shipbuilding industry cooperation between Korea and the United States, as highlighted in his summit with U.S. President Donald Trump.

“Korea’s shipbuilding industry is embarking on a new challenge to strengthen U.S. maritime security and contribute to the revival of the U.S. shipbuilding industry,” Lee said as he attended the christening ceremony for the State of Maine training vessel at the shipyard in Philadelphia.

The president’s visit to Philly Shipyard underscored his commitment to the “Make American Shipbuilding Great Again” (MASGA) project, which played a pivotal role in the Korea-U.S. tariff negotiations.

Lee emphasized that the project will “create a win-win outcome where both the U.S. and Korean shipbuilding industries will advance together.”

Korea’s $150 billion MASGA shipbuilding cooperation initiative is considered a centerpiece in a trade deal reached in late July that set tariffs on Korean exports to the United States at 15 percent, lower than the announced 25 percent.

Lee said that his proposal to President Trump to make U.S. shipbuilding great again “isn’t just about building massive warships and cutting-edge vessels” but to present a “grander vision of restoring a lost dream.”

Korean attendees included Industry Minister Kim Jung-kwan, Foreign Minister Cho Hyun, National Security Adviser Wi Sung-lac, presidential chief of staff for policy Kim Yong-beom and former Foreign Minister Kang Kyung-wha, ambassador-designate to the United States. Industry leaders included Hanwha Group Vice Chairman Kim Dong-kwan and Hanwha Ocean CEO Kim Hee-chul.

A bipartisan U.S. delegation included Democratic Pennsylvania Gov. Josh Shapiro along with Republicans Sen. Todd Young of Indiana and former U.S. Secretary of Transportation Elaine Chao. U.S. Transportation Secretary Sean Duffy wasn’t able to attend the ceremony due to a Cabinet meeting.

The Hanwha Philly Shipyard was established as a U.S. Navy shipyard in 1801 and became a private shipyard in 1997. Last December, it was acquired by Hanwha Group, marking the first time a Korean shipbuilding company has taken ownership of a U.S. shipyard.

The State of Maine is the first vessel completed since the shipyard’s relaunch under Hanwha. It is the third of five national security multi-mission vessels (NSMV) built for the U.S. Department of Transportation’s Maritime Administration.

The purpose-built training ships are for state maritime academies in Maine, Massachusetts, New York, Texas and California, but secondarily also provide humanitarian aid and disaster relief. Thus, the vessel would be used for training cadets during peacetime, but in emergencies, it can be used for disaster response and rescue missions.

DSEC, a marine engineering company, participated in the design and procurement of equipment, representing Korea-U.S. shipbuilding cooperation through combining Korean technology and supply chains with U.S. facilities and personnel to build the vessel, the presidential office said in a statement.

Hanwha Philly Shipyard is contracted by the U.S. Department of Transportation Maritime Administration to build five NSMV vessels, each valued at $300 million.

Lee said the shipyard, which has world-class capabilities, will become a leading shipyard in the United States that showcases cutting-edge shipbuilding technology.

“Through Philly Shipyard, the 72-year Korea-U.S. alliance will open a new chapter as a future-oriented comprehensive strategic alliance encompassing security, economy and technology,” Lee said.

Lee stressed that the key players in Korea-U.S. shipbuilding cooperation are the businesspeople and workers who will “make the miracle of MASGA a reality.”

“Hanwha is committed to being a partner in building the next chapter of American shipbuilding,” Hanwha Group Vice Chairman Kim Dong-kwan said at the ceremony. “Together with our partner in the United States and following the vision of both President Trump and President Lee to revitalize the maritime industry, we look forward to new investments, new opportunities and to playing a central role in making U.S. shipbuilding great again.”

President Lee later toured the shipyard after the christening ceremony and was briefed on the shipyard.

Hanwha Group announced that additional investment in Philly Shipyard would expand production capacity from the current 1.5 vessels per year to approximately 20 vessels per year, and that in the mid- to long-term, the company would secure the capacity to manufacture large, advanced vessels, such as liquefied natural gas carriers.
 
It expects the current work force to grow from approximately 7,000 employees to exceed 10,000 jobs.

During the bilateral summit at the White House on Monday, Trump highlighted Korea’s shipbuilding prowess and his hopes to both purchase and build vessels, stressing that the United States wants to get “back into the shipbuilding business again.”

Lee told a Korea-U.S. business roundtable in Washington later Monday that “Korea, with its unparalleled technological prowess,” is the “optimal partner for achieving a manufacturing renaissance in the United States.”

Lee arrived in Philadelphia on August 26 for the last leg of his three-city trip after a bilateral summit with U.S. President Donald Trump at the White House in Washington on August 25.

Earlier in the day, Lee paid tribute to fallen service members at Arlington National Cemetery in Virginia. Lee and first lady Kim Hea Kyung later visited the memorial of the late independence activist Seo Jae-pil, also known as Philip Jaisohn, in Philadelphia. He is the first Korean president to visit the Philip Jaisohn Memorial House in 26 years.

Lee wrapped a six-day trip that included a visit to Tokyo for a bilateral summit with Japanese Prime Minister Shigeru Ishiba over the weekend.

The president and first lady were set to arrive in Korea early on August 28.

BY SARAH KIM [kim.sarah@joongang.co.kr]