John Phelan, US President Donald Trump's nominee to be Secretary of the Navy, speaks before a confirmation hearing at the US Senate Committee on Armed Services in Washington DC, on Thursday. (AP)
John Phelan, US President Donald Trump's nominee to be Secretary of the Navy, speaks before a confirmation hearing at the US Senate Committee on Armed Services in Washington DC, on Thursday. (AP)

A US Navy Secretary nominee cited Korean conglomerate Hanwha’s recent acquisition of a US shipyard as an example of foreign partners bringing capital and expertise into the country’s shipbuilding industry.

John Phelan, nominated to be the first Navy Secretary in US President Donald Trump’s second term, made the remark at the US Senate Armed Services Committee in Washington DC, during his confirmation hearing on Thursday.

"Hanwha has recently bought the Philadelphia shipyard. They are going to look at enhancing it and making it better. So bringing their capital and skill sets here, I think, would be important," Phelan said in response to questions about how to collaborate with allies to revitalize the country’s naval forces.

He also noted the need for the US to consider the expertise and skills of foreign partners, particularly in ship component construction.

The Hanwha Philly Shipyard, previously owned by Norwegian industrial investment company Aker ASA, was acquired by Hanwha Group's defense unit, Hanwha Systems, and shipbuilding unit, Hanwha Ocean, in a $100 million deal last year.

This acquisition marked a significant milestone in Hanwha's entry into the US shipbuilding market for both commercial and defense vessels.

The US has been focusing on revitalizing its ailing shipbuilding industry amid China's rapid navy power buildup. The US navy has fewer than 300 military vessels, while China's fleet is expected to near 400 units this year.

During a call with Korean President Yoon Seok Yeol on Nov. 7, Trump expressed his anticipation of collaborating with the Korean shipbuilding industry, acknowledging Korea's world-class shipbuilding capabilities and warships.

Amid the US' growing interest in partnering with allies strong in shipbuilding, Korean media outlets have reported that US Defense Secretary Peter Hegseth is considering visiting Korean shipyards in March, including those of HD Hyundai Heavy Industries and Hanwha Ocean.

Phelan also wrote that he would leverage the combined capabilities of US allies to strengthen collective security while reducing the burden on US taxpayers, as an answer in response to prehearing questions.

A business figure who founded multiple private investment companies, Phelan would be the first US Navy Secretary in 15 years without military experience, if confirmed.

Acknowledging concerns about his career background, Phelan stated that he will leverage his experiences in the private sector to address the navy’s chronic issues.

"The Navy and the Marine Corps already possess extraordinary operational expertise within their ranks. My role is to utilize that expertise and strengthen it to step outside the status quo and take decisive action with a results-oriented approach," said Phelan in his speech at the beginning of the hearing.


forestjs@heraldcorp.com