Hanwha Defense USA, the US subsidiary of Hanwha Aerospace, has secured a $269 million deal to construct a medium landing ship for the US Navy and Marine Corps at its Philly shipyard, marking a major step in South Korean defense group's push into the American naval shipbuilding market.
The company said Friday it was selected by US maritime services company Tote Services to build one medium landing ship, or LSM, with options for three additional vessels.
The contract marks Hanwha Group’s first order to build a new US Navy vessel since acquiring Philly Shipyard in Pennsylvania in 2024.
Construction is scheduled to begin in the fourth quarter of 2027, according to Tote Services.
The contract was awarded through Tote Services which was selected by the US Navy in July under a $2.2 billion vessel construction manager program. Under the arrangement, the Navy delegates shipyard selection and construction oversight to a specialized company rather than contracting directly with individual shipbuilders.
Tote Services said it selected Hanwha Defense USA through a competitive bidding process launched in July, citing its competitive pricing and acceptance of contract terms.
Tote Services is responsible for managing the construction of up to eight landing ships under its initial contract, with the first vessel expected to be delivered in 2030.
"Since acquiring Philly Shipyard in 2024, Hanwha has made significant investments in its workforce and technology to pave the way to build ships for the US Navy and other federal customers," said Michael Coulter, president and CEO of Hanwha Defense USA.
The deal comes as Seoul and Washington pursue closer shipbuilding cooperation under the “Make America Shipbuilding Great Again” initiative, aimed at revitalizing the US shipbuilding industry and strengthening its naval construction capabilities.
It also comes as Hanwha Defense USA plans to acquire the 60 percent stake in Philly Shipyard held by Hanwha Systems, a move intended to consolidate its role in the group’s US naval shipbuilding business.
sahn@heraldcorp.com
