U.S. Navy opens shipbuilding to foreign yards

Shares of South Korea’s Hanwha Group and Italy’s Fincantieri rose following a directive from President Donald Trump that opens U.S. Navy shipbuilding to foreign shipyards. Under a signed national security memorandum, foreign builders that make substantial investments in U.S. shipyards and train an American workforce may be temporarily permitted to build up to two ships in their parent shipyards to ensure quick delivery.

The policy allows for the construction of three specific vessel types abroad: surface combatants, consolidated cargo replenishment tankers, and roll-on/roll-off vessels.

Hanwha is considered a frontrunner due to its significant financial commitments in the U.S., including a $5 billion pledge to expand the Philly Shipyard in Pennsylvania. Fincantieri, Europe’s largest shipbuilder, has also maintained a large U.S. footprint, having spent over $800 million on domestic shipyards like Fincantieri Marinette Marine and Fincantieri Bay Shipbuilding over the last decade.