HD Hyundai and Kiewit are planning to develop a new shipbuilding factory on the Gulf Coast of the United States, aimed at creating modern ship production facilities and utilizing an existing industrial site with deep water access and no restrictions. According to plans, construction of this factory will begin in 2027, and full operations are expected to start by 2029. Once fully operational, this factory could create up to 3,000 new jobs.
Future Model of HD Hyundai's Shipbuilding Factory
As part of this plan, HD Hyundai intends to implement the "Future of Shipbuilding" (FOS) model and digital production technology in this proposed facility. Advanced solutions such as "digital twin," automated production systems, and robotic welding are considered to improve productivity, quality, and safety in the shipbuilding process.
South Korean Investment and Business Plans
South Korea, as part of its trade negotiations with the previous U.S. government, committed to investing $150 billion in a program it called "American Shipbuilding Magnification." This investment is part of a broader $350 billion investment in the United States promised in exchange for tariff reductions.
This plan represents the latest effort by HD Hyundai to target the U.S. industry. The company had previously announced that it would collaborate on projects with Kiewit and has also secured agreements with companies such as Fraser Industries, HII (Huntington Ingalls Industries), and Edison Chouest Offshore.
Previous reports indicate that HD Hyundai is in discussions with at least three companies to develop a shipbuilding factory in the United States. These activities also position the company in a situation where reports suggest the previous U.S. government was looking to utilize the "Finnish" model, which involves combining foreign shipbuilding expertise and capacity with developing U.S. capabilities. Two factories in Finland are working on the first polar icebreakers for the U.S. Coast Guard while this plan includes transferring expertise and building subsequent ships in the United States.
Reports indicate that the previous U.S. government frequently discussed with the South Korean President the need for American ships and a plan to build two destroyers and two civilian support ships in South Korea.
