Korean shipbuilding and steel companies that have entered the United States are accelerating local hiring. The move is seen as a strategy to tap into U.S. government subsidies while strengthening long-term business foundations.
On the 18th, according to the shipbuilding industry, David Kim, CEO of Hanwha Philly Shipyard Inc., recently met with a U.S. federal government official at Hanwha Philly Shipyard Inc. in Pennsylvania and said the company would strengthen cooperation with the local community on shipbuilding equipment supply chains and job creation.
CEO David Kim said, "For each Philly Shipyard vessel, we work with 1,000 suppliers, 75% of which are in the Philadelphia area," adding, "We will expand our workforce, including partner employees, from the current 2,000 to more than 10,000."
Hanwha Philly Shipyard Inc. plans to expand its shipyard apprenticeship program and workforce training facilities. Philly Shipyard will increase apprentices from the current 200 to 500. It will also build new training facilities on the shipyard site. A representative example is increasing the number of welding booths from the current 21 to 95.
Hanwha Philly Shipyard Inc. is focusing on expanding its local workforce to secure incentives such as subsidies from the U.S. government while building a long-term business base.
In January, the U.S. Department of Labor said it planned to provide subsidies of $8 million and $5.8 million, respectively, to two educational institutions near Hanwha Philly Shipyard Inc. to nurture shipbuilding talent in the United States. With the subsidies, Hanwha Philly Shipyard Inc. established the "International Shipbuilding Fellowship Program" and is training shipyard apprentices in welding, steelwork and other skills.
Korean steelmakers that have entered the United States are also putting effort into securing local talent. "Hyundai-POSCO Louisiana Steel (HPSL)," which is set to break ground on a steel mill in Louisiana, estimates it will need 1,300 full-time direct hires locally. HPSL's strategy is to secure the large workforce needed to operate the mill by linking up with local universities to ensure smooth staffing.
HPSL is establishing a steel manpower development center with River Parishes Community College (RPCC), a local two-year public college, aiming to open in the second half of next year. The center plans a two-year curriculum targeting certification in three areas: electrical and mechanical maintenance and advanced manufacturing.
A Hyundai Steel official said, "In Korea as well, managerial and technical personnel are deployed to steel mills, but given the need for a large workforce, securing local talent is extremely important," adding, "We have no choice but to strengthen cooperation with the local community."
Lee Eun-chang, a research fellow at the Korea Institute for Industrial Economics & Trade (KIET), said, "Workforce and production technology are as urgent and necessary as capital investment," adding, "In the case of shipbuilding, facilities have become outdated, so the first priority was to modernize the production system, followed by workforce and technology."