South Korea’s Hanwha Group is exploring an expansion of its shipyard in Philadelphia and potential acquisitions of other US shipyards, as demand for naval and uncrewed vessels rises, The Wall Street Journal reported Thursday.
Michael Coulter, CEO of Hanwha Defense USA, the US subsidiary of South Korea’s defense-to-shipbuilding conglomerate, told the newspaper in an interview that the company is currently engaged in discussions with the Donald Trump administration about possible deals to build surface, subsurface and uncrewed vessels.
To meet rising demand, Coulter said the company “needs more space.”
Hanwha affiliates Hanwha Ocean and Hanwha Systems acquired the Philly Shipyard in December 2024 for $100 million to enter the US shipbuilding market. Once a major naval shipyard, Philly Shipyard has in recent years been limited to producing one or two vessels annually, operating with two docks, which Coulter said is insufficient to handle increasing volume.
The company, which aims to produce up to 20 ships a year, is in discussions with federal, state and local officials about expanding capacity and securing additional storage property around the Philadelphia region, Coulter said.
Options under consideration include gaining access to unused or underutilized docks in the area, as well as using docks at other shipyards to accommodate Hanwha’s excess orders.
Hanwha is likewise giving serious consideration to purchasing a second US shipyard in a different region over the next few years. “We think there’s a unique time in history right now,” Coulter was quoted as saying.
A Hanwha Group official in Seoul confirmed the report, but said no specific plans have as yet been finalized.
The expansion push reflects Hanwha's efforts to speed up execution of the "Make American Shipbuilding Great Again" project, a South Korea-US shipbuilding cooperation project aimed at revitalizing the American shipbuilding industry. Through a $150 billion South Korean government-backed investment fund formed as part of a broader bilateral trade deal, Hanwha has emerged as a central industrial partner under the initiative.
The Philly Shipyard has been cited as a potential construction site for South Korea’s future nuclear-powered submarines, following agreements reached between Seoul and Washington in October. US President Trump, however, said the submarines should be built at Philly Shipyard, while Seoul has argued for the vessels to be made in Korea.
Coulter said Hanwha has the full capability to manufacture submarines in either the US or South Korea, with the final decision to come from the two governments.
Last month, key US executives of Hanwha Group expressed confidence that the Philly Shipyard is prepared to construct nuclear-powered submarines for the US Navy. They said the groundwork was already underway, including workforce expansion, productivity enhancement, facility investments and technology transfers.
Amid Hanwha's broader US shipbuilding push, affiliates Hanwha Defense USA and Hanwha Systems on Thursday announced they are partnering with Havok AI, a US firm specializing in autonomous maritime systems, to pursue a contract to supply the US Navy with hundreds of autonomous surface vessels. The vessels would be capable of missile launches, cargo transport and surveillance missions.
sahn@heraldcorp.com
