U.S. Navy Secretary Visits Philly Shipyard, Discusses Cooperation Plans with Vice Chairman Kim Dongkwan

Russell Vought: "Highly Values Philly Partnership"
Kim Dongkwan: "Leading the MASGA Project"

It has been reported that John Phelan, Secretary of the U.S. Navy, and Russell Vought, Director of the White House Office of Management and Budget, visited Hanwha Philly Shipyard in Philadelphia, Pennsylvania, ahead of the Korea-U.S. tariff negotiations. President Donald Trump is said to have received a report on the outcome of the site visit by the two senior officials and made the final decision to conclude the tariff negotiations based on their findings.

Key figures who visited Hanwha Philia Shipyard, acquired by Hanwha Group in the United States, gathered in one place. From the second left, Russell Vought, Director of the White House Office of Management and Budget (OMB), John Pellen, U.S. Secretary of the Navy, and Dongkwan Kim, Vice Chairman of Hanwha Group. Provided by Hanwha

Director Vought, who also served as OMB Director during the first Trump administration, is a key aide and serves as the control tower for the 'Make American Shipbuilding Great Again (MASGA)' project, which aims to revitalize the shipbuilding industry. The Office of Management and Budget is a core White House department that coordinates policy priorities, including budget planning and execution, and the adjustment of the administration's legislative proposals.

According to Hanwha, on July 30 (local time), Secretary Phelan and Director Vought toured major production facilities at the Philly Shipyard, guided by Vice Chairman Kim Dongkwan and Kim, the head of the Philly Shipyard, and discussed ways to expand Korea-U.S. cooperation in shipbuilding. At the meeting, Vice Chairman Kim stated, "With world-class shipbuilding capabilities, Hanwha will use the Philly Shipyard as a bridgehead to lead the construction of new shipyards in the U.S., the training of shipbuilding personnel, supply chain restructuring, and ship MRO (maintenance and repair operations)." Vice Chairman Kim also reportedly requested cooperation from the U.S. government along with Hanwha’s mid- to long-term investment plans.

According to Hanwha, Secretary Phelan and Director Vought met with trainees at the shipyard to listen to their opinions and personally inspected automated welding equipment brought in from Hanwha Ocean's Geoje Shipyard. In an interview with local media, Director Vought said, "We are very encouraged by Hanwha's investments and activities, and cooperation with local employees is also positive." Secretary Phelan stated, "Strengthening the shipbuilding and maritime industry base is the top priority for both the Trump administration and the Navy. Three months ago, I visited Hanwha Ocean’s Geoje Shipyard in Korea, and I wanted to see firsthand what kinds of investments are being made here at the Philly Shipyard."

Immediately after their visit to the Philly Shipyard, President Trump announced the conclusion of the tariff negotiations, including the MASGA project. A U.S. government source said, "President Trump made the final decision to conclude the tariff negotiations after receiving a report on the results of Russell Vought and John Phelan's site visit to the Philly Shipyard."

Previously, in April, Secretary Phelan visited the Geoje Shipyard, where he was guided by Vice Chairman Kim to the commercial ship and submarine construction sites, as well as the U.S. Navy’s 7th Fleet Yukon MRO site. It is considered unusual for the highest-ranking U.S. Navy official to visit both Hanwha's shipyards in Korea and the U.S. At that time, Vice Chairman Kim stated, "Hanwha Ocean has a shipbuilding system capable of responding quickly to the strategic needs of the U.S. Navy, and we will maximize synergy and strengthen our presence through multiple shipyards in North America."

Since acquiring the Philly Shipyard at the end of last year, Hanwha has begun comprehensive improvements, including facility investment, technology transfer, and employment expansion. By introducing Korean-style production management techniques, Hanwha aims to increase its current annual shipbuilding capacity from 1 to 1.5 ships to 10 ships by 2035.