US media: "South Korea's commitment to reviving the US shipbuilding industry will take a long time!"
The Wall Street Journal recently reported that it will take a long time for South Korea to fulfill its commitment to reviving the US shipbuilding industry.
According to the Wall Street Journal, among the 12 US-flagged vessels manufactured by Hanwha, two large LNG carriers that will transport US-produced natural gas to Asia and Europe will have almost all of their construction work carried out in Geoje, South Korea.
The Hanwha Philadelphia Shipyard, which Hanwha acquired last year for $100 million, will only perform inspection and supplementary work to ensure these LNG carriers meet US legal and maritime safety standards.
The Wall Street Journal pointed out that the Philadelphia Shipyard currently lacks the capability to build complex large ships. The cost of building an ocean-crossing vessel in the United States is four to five times higher than building it in South Korea or China.
Experts predict that the construction cost of the 10 medium-sized oil tankers recently contracted by Hanwha at the Philadelphia Shipyard will reach $220 million. It is reported that if built in China or South Korea, the price would be approximately $47 million.
Currently, US shipyards that produce commercial vessels mainly focus on small ships. Even so, this is only made possible by the Jones Act established in 1920, which maintains jobs. Most of the few remaining large shipyards in the US are currently engaged in the construction and maintenance of US Navy warships.
Experts said: "Just injecting capital alone, even billions of dollars, is not enough to drive a sustainable revival of the US shipbuilding industry."
Original article: www.toutiao.com/article/1848550340639755/
Statement: This article represents the views of the author.