US President Trump on Monday announced plans for a new "Trump class" of battleships, marking the start of an expanded naval buildup and signaling increased scrutiny of defense contractors over production delays and cost overruns.
Trump said the new battleships would be larger, faster and "100 times more powerful" than any previously built, forming the centerpiece of what he called an expanded "Golden Fleet" aimed at cementing US naval dominance.
The program will begin with two vessels and is expected to grow to between 20 and 25 ships, Trump said. The first of the class will be christened the USS Defiant.
Trump, who has previously criticized the appearance of US warships, said he will be personally involved in the designs.
He said the ships will weigh more than 30,000 tons, larger than current destroyers, and be equipped with the latest technology, including artificial intelligence and directed energy lasers.
"We haven't built a battleship since 1994. These cutting-edge vessels will be some of the most lethal surface warfare ships...other than our submarines," Trump said.
In addition to carrying conventional naval guns, the new battleships will be equipped with nuclear-armed, sea-launched cruise missiles, US Navy Secretary John Phelan said, appearing with Trump in Florida for the announcement.
Some US officials have warned that a failure to build new battleships in recent years has handed an advantage to economic and military rival China. Trump downplayed China's influence on the decision, saying the expansion was "a counter to everybody".
He said the naval expansion would be paired with renewed pressure on defense contractors to speed up production and rein in costs. He said he will meet with major defense firms next week to address delays and overruns, and to examine whether executive compensation, stock buybacks and dividends are contributing to missed production targets.
"We don't want to have executives making $50 million a year, issuing big dividends to everybody, and also doing buybacks," while production of F35s and other jets languish, Trump said.
Reuters reported last week that the administration was planning an executive order to limit dividends, buybacks and executive pay for defense contractors whose projects are over-budget and delayed.
Trump and the Pentagon have been complaining about the expensive, slow-moving and entrenched nature of the defense industry, promising dramatic changes that would make the production of war equipment more nimble.
Besides the new battleship class, the expanded fleet envisions increasing numbers of other warships, including introduction of a new, smaller class of frigates previously announced by the navy, Trump said.
Shares of South Korea's Hanwha Ocean jumped six per cent in morning trade after Trump said the company would participate in building frigates for the US Navy.
"Last week, the navy announced a brand-new class of frigate and they're going to be working with the South Korean company Hanwha," Trump said, calling Hanwha a "good company."
(Reporting by Steve Holland; Additional reporting by Steve Gorman, Jarrett Renshaw and Lisa Baertlein; Editing by Howard Goller, Rosalba O'Brien and Stephen Coates)
