Hanwha Wins First U.S. Navy Shipbuilding Contract, Two Years After Acquiring Philly Shipyard

Valued at $269 million
Includes options to build three additional ships

Hanwha Defense USA has won its first contract to build medium landing ships (LSMs) for the U.S. Navy and Marine Corps. It is the first new-build U.S. Navy ship project Hanwha has won since acquiring Philly Shipyard in 2024.

According to Hanwha Defense USA on October 31, the company was selected to build medium landing ships for the U.S. Navy and Marine Corps following a competitive process conducted by TOTE Services, a U.S. ship management company. Hanwha Defense USA is the first shipbuilder selected under TOTE Services' Vessel Construction Manager (VCM) contract.

A view of Hanwha Philly Shipyard. The Asia Business Daily archive.

The contract is valued at $269 million (approximately 360 billion won). Hanwha will build one medium landing ship at Hanwha Philly Shipyard in Philadelphia, Pennsylvania. The contract also includes options to build three additional ships.

Construction is scheduled to begin in the fourth quarter of 2027. TOTE Services said the competitive bidding process secured terms favorable to the government, as well as a slot that allows construction to begin at that time.

Michael Coulter, CEO of Hanwha Defense USA, said, "Since acquiring Philly Shipyard, we have made significant investments in personnel and technology to build ships for the U.S. Navy and federal government." He said the company would deliver the ship on schedule and within budget.

Hanwha Philly Shipyard previously built and delivered four National Security Multi-Mission Vessels (NSMVs) for the U.S. government in partnership with TOTE Services. Hanwha Defense USA said it plans to draw on this experience in building medium landing ships.

TOTE Services' VCM contract is valued at $2.2 billion and supports the U.S. Navy and Marine Corps' plan to acquire a total of 35 medium landing ships. The program's first ship is scheduled for delivery in 2030.

Hanwha Defense USA is also in the process of acquiring a controlling stake in Philly Shipyard. Hanwha plans to transform the shipyard into a dual-use facility that builds ships for both the U.S. Navy and commercial customers, expanding its shipbuilding and defense businesses in the United States.

This content was produced with the assistance of AI translation services.