In a landmark move to revitalize the United States' maritime industrial base, President Donald Trump has issued a National Security Presidential Memorandum authorizing foreign shipbuilders with significant operations in the U.S. to construct a limited number of naval vessels in their home countries. The policy, formally titled “Rebuilding the United States Navy and America's Shipbuilding Industrial Base,” marks a significant pivot in U.S. defense procurement strategy.

The “Finland Model” Strategy 

President Trump described the initiative as an expansion of the “Finland Model,” a framework previously utilized for the procurement of Arctic security cutters. Under this directive, foreign companies that establish or acquire shipyards in the United States—and hold majority stakes in them—are permitted to build the first two ships of a class at their domestic facilities abroad. 

This "fast-track" approach is designed to immediately bolster the U.S. Navy’s fleet capacity while simultaneously facilitating a technology transfer to revitalize aging American shipyards. However, the memorandum explicitly mandates that after the initial two vessels, all subsequent construction, as well as all maintenance and repair work, must be performed within the United States using American supply chains and a trained U.S. workforce. 

Hanwha Ocean: The Prime Beneficiary

Industry analysts identify South Korea’s Hanwha Ocean as the most likely and immediate beneficiary of this policy. Hanwha Ocean, a subsidiary of Hanwha Group, successfully acquired the Philadelphia-based Philly Shipyard in 2024, positioning it as a key player in the U.S. maritime market. 

The company’s deep integration into the U.S. defense ecosystem—further highlighted by Hanwha Defense USA’s recent subcontracting success for the U.S. Navy—aligns perfectly with the requirements of Trump’s new memorandum. Beyond its existing footprint, Hanwha has also signaled aggressive expansion plans, including a proposed $1.2 billion bid for the U.S. operations of Australian defense firm Austal. 

Strengthening the U.S.-Korea Shipbuilding Alliance

This memorandum is a direct outgrowth of the broader strategic partnership between Washington and Seoul, often referred to as the “MASGA” (Make American Shipbuilding Great Again) project. First discussed during tariff negotiations in 2025, the MASGA initiative seeks to leverage Korean shipbuilding expertise to modernize American shipyards that have struggled with outdated processes and technical personnel shortages for decades. 

“The U.S. has consistently prioritized rapidly securing military assets, and this policy demonstrates a pragmatic approach to closing the capacity gap,” said a senior shipbuilding industry official. 

Next Steps

President Trump has directed the Secretary of Defense to submit a detailed ship procurement plan within 90 days of the memorandum’s signing. The plan is expected to cover three specific vessel classes: surface combatants capable of anti-submarine and surface warfare, non-combat integrated cargo supply tankers, and roll-on/roll-off (RO-RO) vessels. 

As the Pentagon prepares its procurement schedule, the eyes of the global defense industry remain fixed on how this technology-transfer-for-access model will reshape the competitive landscape of the U.S. naval industrial base. For Hanwha Ocean and the South Korean shipbuilding sector, the memorandum provides a historic opportunity to deepen their role as essential partners in American national security.