Hanwha, Fincantieri shares rise after Trump opens Navy shipbuilding to foreign yards
XLI•Policy may favor tankers first and complicate Austal bid
Clark expects the policy shift to initially produce tankers and roll-on/roll-off vessels rather than warships, given the cost and complexity of redesigning such ships for the U.S. supply chain.
The U.S. shift complicates Hanwha's non-binding bid for Austal's U.S. operations, since a sale could cost Austal's Australian parent a chance to build two ships domestically under the new rules. Austal ASB.AX rose 5.6% on Friday. Austal did not immediately respond to a request for comment.
Clark said Australia is unlikely to make the necessary investment to qualify, given its commitments under the AUKUS submarine pact.
The Shipbuilders Council of America, which represents U.S. companies, warned that directing shipbuilding overseas undercuts U.S. industry.
