Shares of South Korea's Hanwha Group and Italy's Fincantieri rose on Friday after President Donald Trump's directive opening U.S. Navy shipbuilding to overseas yards. The move is seen as a significant shift in the U.S. Navy's shipbuilding strategy, which could lead to increased collaboration and competition between domestic and foreign shipbuilders.
The directive, which was announced by President Trump, aims to increase efficiency and reduce costs in the U.S. Navy's shipbuilding program. By allowing foreign yards to bid on U.S. Navy contracts, the program may attract new investment and expertise, potentially leading to faster and more cost-effective ship construction. The move is expected to have a significant impact on the global shipbuilding industry, with Hanwha and Fincantieri likely to be among the major beneficiaries.