Seoul, Aug 25 Hanwha Ocean, a major South Korean shipbuilder, will invest an additional $70 million "to expand" its shipyard in the state of Philadelphia in the US, according to the White House's website on Monday.
Hanwha Group acquired Philly Shipyard for 140 billion won ($100 million) last year to enter the U.S. shipbuilding market, with a long-term goal of securing U.S. Navy contracts.
Two group affiliates, Hanwha Ocean and defence solutions provider Hanwha Systems, hold 40 percent and 60 percent stakes in the shipyard, respectively, reports Yonhap news agency.
Hanwha Ocean aims to boost the shipyard's annual shipbuilding capacity to eight to 10 vessels by 2035 from the current 1 to 1.5. It also seeks to increase annual sales tenfold, from $400 million to $4 billion, over the same period.
Hanwha Ocean has yet to confirm the additional investment.
Hanwha Philly Shipyard is the first U.S. shipyard acquired by a South Korean shipbuilder and has emerged as a centrepiece of bilateral shipbuilding cooperation between Seoul and Washington, dubbed "Make American Shipbuilding Great Again" (MASGA).
U.S. President Donald Trump has stressed the need to revive the U.S. shipbuilding industry and highlighted the role of allies such as South Korea, a global leader in naval vessel construction.
South Korean President Lee Jae Myung is scheduled to visit the shipyard on Tuesday (US time), a day after his summit with Trump in Washington.
Meanwhile, the South Korean government will launch a consultative body of relevant ministries to support the shipbuilding cooperation initiative with the United States, the industry minister said this month, noting the project will create new opportunities for the Korean shipbuilding industry.
Industry Minister Kim Jung-kwan unveiled the plan during the naming ceremony of two liquefied natural gas (LNG) carriers to be delivered to the U.S. by Korean shipbuilding giant Hanwha Ocean Co.
"The government will swiftly form a consultative body comprising relevant agencies to support the Make American Shipbuilding Great Again (MASGA) project, while closely communicating with the U.S. side to create tangible results," he said.
MASGA refers to South Korea's proposal for bilateral shipbuilding cooperation with the U.S. made during its tariff negotiations with the Donald Trump administration.
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