Fincantieri is Ready to Capitalize on Trump's Opening to Foreign Shipbuilding for the U.S. Navy

The new shipbuilding program of the U.S. Navy is falling behind, and for this reason, the United States will be able to count on the support of foreign shipyards, following the already proven model with the Memorandum of Understanding signed in 2025 with Finland for a series of icebreakers intended for the Coast Guard.

This is the significance of a new memorandum titled "Rebuilding the U.S. Navy and the U.S. Shipbuilding Industrial Base," signed by U.S. President Donald Trump on August 13, the publication of which, among other things, boosted the shares of Fincantieri and Hanwha, the two most active foreign shipbuilding groups currently in the United States.

The document points out a series of setbacks in six different shipbuilding programs of the U.S. Navy, resulting from "overly complex designs" and modifications that have led to "cost increases, delays, and cancellations." The lack of production capacity and competition among shipyards, it states, has also left "the commercial shipbuilding sector uncompetitive globally," it adds.

According to the memorandum, the Department of Defense must address these critical issues by using proven, reliable, and economically viable technologies and ship designs, and also, in the short term, by acquiring vessels from foreign suppliers, for up to three classes of vessels. While specific projects have not yet been selected, these will include surface combatants, tankers for consolidated cargo replenishment at sea (CCR), and ro-ro vessels for military maritime transport.

However, this is conditioned on the foreign operator in question simultaneously establishing (even through acquisition) a shipyard in the United States to build the vessels that add to the first two of each program. The document further clarifies that such a shipyard must, among other things, employ U.S. citizens (whom the operator will train) and utilize a U.S. supply chain.

In summary, what has been described seems to be a progressive process of industrial transfer, which the U.S. administration will structure similarly to the "Finnish model" established in 2025 for the supply of Arctic Security Cutters (ASC) to the U.S. Coast Guard. Specifically, this model has facilitated the signing of contracts with Rauma Marine Constructions (RMC) for the construction of two ASCs in Finland, with the first delivery expected in 2028, and with Bollinger Shipyards in the U.S. for up to four additional units, with deliveries starting in 2029.

The publication of the memorandum immediately boosted the shares of Fincantieri and the South Korean group Hanwha, two of the largest shipbuilding companies in the United States.

Specifically, the Italian group operates in the country through Fincantieri Marine Group, which includes four facilities, among them Fincantieri Marinette Marine, a shipyard that, among other things, will build the medium landing ships (LSM) for the new U.S. Navy program.

Hanwha, which acquired Philly Shipyard in 2024, also seems to be among the candidates. The South Korean group had submitted a non-binding offer, valued between $1.05 billion and $1.2 billion, to acquire the U.S. operations of the Australian group Austal, in which it already holds a 19.9% stake. Austal, which builds vessels for the U.S. Navy and Coast Guard, is looking to consolidate its position in the U.S. market.

Following the publication of the Memorandum, shares of Hanwha Ocean Co. rose by 5.6%, matching the gains of Austal. However, it seems unlikely that Austal will participate in the plan, as its involvement in the Aukus program (the trilateral program between Australia, the United States, and the United Kingdom for the development of nuclear submarines) and its current commitments would make it difficult for the Australian group to meet the requirements of the new plan.

Photo: Sextum