Hanwha unveils $5b US shipyard push to revive American shipbuilding

Hanwha Group has pledged a $5 billion investment in Hanwha Philly Shipyard as part of Korea’s commitment to supporting the revival of the shipbuilding industry in the United States.

Hanwha announced the new investment on Tuesday during the christening of the new US Maritime Administration’s third National Security Multi-mission Vessel at Hanwha Philly Shipyard. The ceremony for the maritime training vessel was attended by South Korean President Lee Jae Myung, who had held his first summit with US President Donald Trump in Washington on Monday. Hanwha acquired Philly Shipyard last year for $100 million.

"Philly Shipyard has a long history spanning more than 200 years. About 50 warships that led the victory in World War II were built here, and some 500 warships set sail from here. Some 50,000 people have worked here to protect America's seas," said Lee in his congratulatory speech.

"Warships from Philadelphia sailed to the rescue of Koreans when they suffered from the shelling of the Korean War. The Koreans established their country's future as they rose from the ashes of the war and created the legend of 'Korea, the shipbuilding powerhouse.' Now Korea's shipbuilding sector is embarking on a new journey to strengthen American maritime security and revive the American shipbuilding industry."

Lee added that Korean shipyards will invest in US shipyards to produce a win-win result for both countries' shipbuilding industries, underscoring that South Korea and the US will open a new chapter of a forward-looking, comprehensive strategic alliance through Philly Shipyard.

"The 'Make American Shipbuilding Great Again' project that I suggested to President Trump was not just about a vision to build large warships and state-of-the-art vessels," said Lee.

"It's a grand vision to revive a lost dream. As the shipbuilding industry represented growth, opportunity, dreams and hope for young Koreans in our country's history, Philly Shipyard will be remembered in the same way by young Americans."

Hanwha Group Vice Chair Kim Dong-kwan expressed gratitude to the leaders of Korea and the US and highlighted the importance of the two countries’ partnerships in bolstering the shipbuilding industry in his welcome address.

“Today’s christening ceremony is the embodiment of our two nations working side by side to reindustrialize in the interest of shared security and prosperity,” said Kim.

“We are creating good manufacturing jobs, building the world's most advanced ships and fostering a new skilled workforce right here in America. This is just the beginning. Hanwha is committed to being a partner in building the next chapter of American shipbuilding.”

The $5 billion investment, which is a part of Korea’s $150 billion shipbuilding cooperation initiative dubbed “Make American Shipbuilding Great Again,” or MASGA, will be utilized to install two additional docks and three quays to increase the production capacity of Hanwha Philly Shipyard. Hanwha said it is also considering building a new block assembly facility.

With such expansion plans, the Korean company said it will look to increase the Philly Shipyard’s annual production volume from the current two vessels to as many as 20, while in the long term aiming to produce liquefied natural gas carriers, naval modules and blocks, and eventually naval vessels at its US foothold.

In addition to the announced expansion, Hanwha Shipping’s US subsidiary said it has ordered 10 mid-sized oil and chemical tankers from Hanwha Philly Shipyard. The first tanker is expected to be delivered by early 2029. Hanwha noted that the vessels will be designed to support the US fleet renewal under the Jones Act and other strategic initiatives.

Hanwha Shipping added that it has exercised its option to order a second LNG carrier from Hanwha Philly Shipyard, following the company’s announcement last month that it had inked a contract for the first export-viable LNG carrier ordered in the US in almost 50 years.