A Landmark Deal Fuels American Manufacturing and National Security
Philadelphia, PA – In a move poised to revitalize American shipbuilding, South Korea’s Hanwha Group has unveiled a $5 billion investment plan for its Hanwha Philly Shipyard in Philadelphia. This initiative is part of a larger $150 billion commitment by South Korea to bolster U.S. shipbuilding capabilities, as agreed upon in a landmark deal signed in July.
Massive Infrastructure Upgrade Planned
The investment will focus on expanding the shipyard’s capacity with the addition of two new docks and three quays. Hanwha is also considering building a new block assembly facility, aiming to increase annual production tenfold, from fewer than two vessels to as many as 20.
Ceremony Highlights Collaboration
The announcement followed a naming ceremony for the U.S. Maritime Administration’s (MARAD) third National Security Multi-mission Vessel (NSMV) at the shipyard. The vessel, destined to serve as a MARAD training ship, was attended by notable figures, including South Korean President Lee Jae Myung and Pennsylvania Gov. Josh Shapiro, underscoring the importance of the collaboration.
Hanwha Vice Chairman Dong Kwan Kim emphasized the significance of the partnership: „Today’s christening ceremony is the embodiment of our two nations working side by side to reindustrialize for the sake of shared security and prosperity,” Kim said. „We are creating good manufacturing jobs, building the world’s most advanced ships, and fostering a new skilled workforce right here in America.”
Future Capabilities and Job Creation
The upgraded shipyard is slated to become a key player in U.S.-South Korean maritime cooperation, producing Liquefied Natural Gas (LNG) carriers, naval modules and blocks, and, in the long term, naval vessels. Additionally, Hanwha Philly will construct 10 medium-range oil and chemical tankers for Hanwha Shipping’s U.S. subsidiary. The first tanker, expected in 2029, will comply with the Jones Act, supporting domestic shipping and fleet renewal.
Transforming Hanwha Philly Shipyard
Hanwha acquired the shipyard for $100 million in 2024 and intends to transform it into a state-of-the-art, digitally-enabled facility with world-class automation. Hanwha’s shipyards in South Korea have a history of maintaining and overhauling U.S. naval vessels, further solidifying the partnership.
