Hanwha Group announced it will invest $5 billion to upgrade infrastructure at Hanwha Philly Shipyard (formerly Philly Shipyard), part of South Korea’s commitment to support the U.S. shipbuilding industry through a $150 billion investment fund.
The investment plan coincides with the christening of the U.S. Maritime Administration’s (MARAD) third National Security Multi-mission Vessel (NSMV).
On August 26 local time, Hanwha Philly Shipyard held a naming ceremony for the third NSMV under construction for MARAD. Attendees included South Korean President Lee Jae-myung with his wife, several senior South Korean officials, Pennsylvania Governor Josh Shapiro, U.S. Senator Todd Young, Hanwha Ocean CEO Kim Hee-cheul, and Hanwha Global Defense CEO Michael Coulter.
Prior to the naming ceremony, Lee Jae-myung held summit talks with U.S. President Donald Trump. Under the previously concluded Korea-U.S. trade agreement, the South Korean government committed to investing $150 billion in the U.S. shipbuilding industry. Hanwha Philly Shipyard is expected to play a pivotal role in future bilateral cooperation.
At the ceremony, Hanwha Group Vice Chairman Kim Dong-kwan emphasized the importance of cooperation for revitalizing the shipbuilding industry in his address, stating: “This naming ceremony embodies the resolve of both nations to advance reindustrialization together for shared security and prosperity. Hanwha is creating high-quality manufacturing jobs in the U.S., building the world’s most advanced vessels, and cultivating a new generation of technical talent. This is just the beginning—Hanwha is committed to being a partner in writing a new chapter for the U.S. shipbuilding industry.”
By the end of 2024, Hanwha Group invested US$100 million to acquire Philly Shipyard in Pennsylvania, subsequently renaming it Hanwha Philly Shipyard. The group plans to develop it into a landmark hub for the U.S. shipbuilding industry. Hanwha Group subsidiaries Hanwha Ocean and Hanwha Systems hold 40% and 60% stakes respectively.
Several months after the acquisition, Hanwha Group has now announced a significant investment to upgrade the infrastructure of Hanwha Philly Shipyard, transforming it into a digitally efficient shipyard equipped with world-class automation and intelligent shipbuilding technologies.
The newly announced investment plan is $5 billion to build two new dry docks and three new wharves to increase production capacity. The company is also evaluating the feasibility of a new ship assembly facility. Through this expansion, Hanwha Group plans to increase the annual production capacity of Hanwha Philly Shipyard from less than two ships to 20. As a leading global builder of liquefied natural gas (LNG) carriers, Hanwha Group plans to build LNG carriers, naval modules, and hull sections at the shipyard, with long-term plans to build U.S. warships.
Beyond infrastructure initiatives, Hanwha Shipping—a subsidiary of Hanwha Group’s U.S. shipping arm—announced an order for 10 MR product tankers from Hanwha Philly Shipyard. The first vessel is scheduled for delivery in 2029. This fleet will support the renewal of the U.S. Jones Act fleet and other strategic initiatives.
Hanwha Shipping also announced that it has exercised an option to order an additional 174,000 cubic meter LNG carrier from Hanwha Philly Shipyard. This is an option for the 1+1 174,000 cubic meter LNG carrier contracted by the two parties in July of this year. These two vessels are the first LNG carriers ordered in the United States in 45 years and are competitive in the export market. Each vessel is priced at approximately US$250 million, comparable to costs at Asian shipyards. The first vessel is expected to be delivered in the first half of 2028.