Major South Korean shipbuilders launch joint task force for massive US investment project

Seoul, Aug 3 (IANS) Major South Korean shipbuilders have launched a joint task force to support the government's cooperation with the United States under a recently agreed-upon large-scale investment project in the US shipbuilding sector, officials said Sunday.

The top three shipbuilders -- HD Hyundai Heavy Industries Co., Hanwha Ocean Co. and Samsung Heavy Industries Co. -- along with the Korea Shipbuilding & Offshore Engineering Association, have formed the TF and held an inaugural meeting recently, according to company officials.

Their focus will be on supporting the "Make American Shipbuilding Great Again" (MASGA) initiative, under which the Seoul government has proposed investing $150 billion in the US shipbuilding industry.

It was part of a broader $350 billion investment package in the US in exchange for Washington's lowering of reciprocal tariffs on South Korean imports to 15 per cent from the initial 25 per cent, Yonhap news agency reported.

"There will be various ways to implement the Korea-US shipbuilding cooperation, and the TF aims to support and facilitate those efforts," an official said. "The industry is working together with the government for the MASGA project through this task force."

The envisioned investment represents the largest single-industry fund in the package and is structured primarily to support Korean shipbuilders' investments in the US through public finance.

The MASGA project includes plans to build new shipyards in the US, train shipbuilding personnel and rebuild related supply chains, as well as build American ships and cooperate on maintenance, repair and overhaul (MRO) projects, according to the Seoul government. But details are still being finalised.

The entity plans to intensify discussions on the project starting in mid-August, following the industry's summer vacation period.

"The TF could serve as a channel for collecting the industry's demands and delivering them to the government," the official added.

--IANS

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