US Navy Issued RFIs to Korean Shipbuilders for Destroyers and Oilers
The United States Navy has formally requested information from South Korea’s leading shipbuilders regarding their capabilities to quickly build destroyers and oilers, according to media reports in Korea. The Korean news agency Yonhap revealed that the U.S. Navy had issued requests for information last month, marking the first formal requests since South Korea launched its “Make American Shipbuilding Great Again” commitments.
The RFIs reportedly came as Donald Trump asked South Korea’s President Lee Jae Myung, “Can you quickly build 10 U.S. warships?” The question was posed on the sidelines of the G7 summit in France in June. Media reports indicate that Trump and Lee met on the sidelines of the current NATO summit and agreed to launch a working-level consultation to explore the U.S. request for shipbuilding.
The RFIs were reportedly seeking details on the design capabilities and shipbuilding capacity of Korea’s leading shipbuilders. The U.S. government was gathering pricing information as well as delivery terms and other market information.
HD Hyundai Heavy Industries and Hanwha Ocean were asked to submit information for eight proposed destroyers. In a separate request, Samsung Heavy Industries, along with the two other yards, also responded with details for medium-sized naval tankers.
Yonhap quotes an industry source as saying, "We responded to the US RFIs by providing a comprehensive overview of the shipyards' capabilities, including their shipbuilding track record, design workforce and expertise, and annual shipbuilding capacity."
By Korea’s estimates, the U.S. Navy needs to add, on average, 12 ships a year to reach the Trump administration’s expansion plans. They report the U.S. Navy seeks to grow from its level of around 300 ships to 381 vessels by 2054. They estimate the U.S. will need to build 364 vessels over the next 30 years.
During the trade negotiations, Korea committed to a $150 billion investment into U.S. shipbuilding as part of a larger $350 billion investment in the United States. South Korea's government-backed policy banks moved forward last month with steps toward formalizing the financing plan for the initiative.
Reports indicate the Trump administration may be seeking ways to skirt around U.S. law, which currently prevents the building of navy ships overseas. The Byrnes-Tollefson Act from the 1960s says the U.S. Navy must build its ships in U.S. yards. The U.S. House Armed Services Committee took up the issue recently during its debate on the Defense Authorization Act and also reiterated that the Navy must use U.S. yards.
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One possible action would be to use the yards in South Korea to work on the design and project plans and then have the companies work with their U.S.-based capabilities. Hanwha Ocean has already been seeking U.S. approval for building destroyers at the yard it acquired in Philadelphia, and it has announced plans for a large expansion of the yard and its capacity. Both HD Hyundai and Samsung formed partnerships in the United States. HD Hyundai is working with Huntington Ingalls Industries, and Samsung partnered with General Dynamics NASSCO.
The Korean shipyards have already begun work with the U.S. government. The yards have been carrying out maintenance and overhauls of USMSC vessels.
