SeatradeMaritime: HD Hyundai joins bid to ‘Make America Shipbuilding Great Again’

The South Korean shipbuilder has partnered with Cerberus to explore investments in US shipyards, ports, and maritime technology.

Cerberus Capital Management and HD Hyundai have formed a partnership to invest in US maritime infrastructure through Cerberus Maritime jumping on the tag line “Make America Shipbuilding Great Again”.

The partnership said it would particularly focus on shipbuilding in the US with HD serving as anchor investor, as well technical and industrial partner.

The move came as South Korean President Lee Jea Myung met with his US counterpart Donald Trump on Monday touting a $150 billion investment in US shipbuilding which came out of trade deal struck between the two countries last month. President Lee promised to “Make America Shipbuilding Great Again” or MASGA.

A statement from Cerberus noted the partnership was “aligned with HD Hyundai’s commitment to the US-Korea alliance and supporting the future of US and allied shipbuilding”.

Both the top executives of both Cerberus and HD Hyundai expressed their support for the MASGA strategy.

HD Hyundai Executive Vice Chairman Chung Kisun stated: “We believe that our partnership with Cerberus Capital will not only provide tangible support for MASGA, which aims to revitalize the US shipbuilding industry, but also create new markets and growth opportunities for Korean shipbuilders. Leveraging our proven expertise and digital capabilities, HD Hyundai will support the modernisation of US shipbuilding and work with both nations to shape a new chapter in the global shipbuilding industry.”

Related:HD Hyundai acquires Doosan’s Vietnam yard

While Cerberus CEO Frank Bruno, said, “We believe our strategy can play an important role by bringing investments alongside operational and technical capabilities to high-impact opportunities. We would like to thank the White House and the entire bi-partisan effort to advance maritime reindustrialisation in the United States and allied nations, and we are extremely grateful for the strong support from South Korea and their bold commitment to MASGA.”

Cerberus aims to build on the experience it has gained from acquiring the distressed Subic Bay shipyard in 2022 which previously was previously operated by Hanjin Heavy Industries and Construction. HD Hyundai is a key tenant in revived shipbuilding activities at the Philippines facility.

The Korean Development Bank (KDB) has also recognised the partnership and intends to facilitate investments.

KDB Vice Chairman & COO Kim Bock-kyu commented: “This investment program is a visionary model of cooperation in the shipbuilding industry, and a manifestation of the enduring trust and partnership between Korea and the United States. As a representative of the Korean financial industry, KDB is proud to play a central role in supporting this investment imperative to ensure its success.”

Related:Shanghai Waigaoqiao Shipbuilding celebrates 600 vessel milestone

In July HD Hyundai inked and agreement with US-based Edison Chouest Offshore (ECO) to build mid-sized LNG dual-fuel containerships in the US starting from 2028.

Last year South Korean shipbuilder Hanwha Ocean acquired Philly Shipyard from its former Norwegian owners Aker. Hanwha Shipping has since ordered an LNG carrier to be delivered by the Hanwha Philly Yard although much of the construction will be carried out at Hanwha’s facilities in Korea.