Hyundai's Ambitious Foray into Reviving U.S. Shipbuilding

South Korea's HD Hyundai Heavy Industries is setting its sights on the U.S. shipbuilding market, capitalizing on a governmental initiative to rejuvenate America's shipbuilding capabilities. A senior executive has revealed plans to purchase a U.S. shipyard, potentially boosting their annual revenue by $2.2 billion by 2035.

Yet, the venture is not without hurdles. A significant shortage of skilled labor, high worker turnover, and restrictive U.S. laws present formidable challenges. Legislation like the Jones Act and the Byrnes-Tollefson Amendment hinders foreign companies from shipbuilding in the U.S., though discussions to amend these laws are ongoing.

Despite these obstacles, Hyundai remains steadfast. The firm believes that doing business within U.S. borders is key to tapping into the lucrative market for naval vessels. As U.S. naval capabilities face scrutiny, Hyundai aims to cooperate with its allies to bridge the gap effectively.

(With inputs from agencies.)