Trump order on foreign-built US ships boosts Hanwha, but strings attached

Hanwha Group and its shipbuilding unit Hanwha Ocean are gaining market attention after U.S. President Donald Trump on Thursday (local time) allowed foreign shipbuilders to build up to two U.S. Navy ships in their home shipyards through a national security memorandum. The memo, which opened the door for Navy ships to be built overseas for the first time in decades, applies to foreign shipbuilders that have made “substantial and durable investments” in U.S. shipyards. Industry officials believe Hanwha Group, which have been committing hefty investments in the U.S. shipbuilding industry, will be a likely beneficiary. However, they also note that the benefits will have to be weighed against follow-up conditions, including potential transfers of shipbuilding technology, as all vessels after the first two would have to be built in the U.S. Hanwha Group said it is currently reviewing the details of the memorandum. Hanwha Ocean also said it is difficult to comment on the matter at this point. According to the memo, the measure covers a foreign supplier that simultaneously builds a new shipya