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

Contract to build one U.S. Navy LSM
Expanding from vessel design to construction

Two years after acquiring Philly Shipyard in the United States, Hanwha has won its first contract to build a U.S. Navy vessel. The contract is expected to give fresh momentum to MASGA, a U.S.-South Korea shipbuilding cooperation project.

A view of Hanwha Philly Shipyard. Hanwha

Hanwha Defense USA said on November 1 that it had signed a contract on October 29 (local time) with TOTE Services, the U.S. Navy's vessel construction manager (VCM), to build one medium landing ship (LSM). The contract is worth approximately $269 million (about 357.5 billion won), and Hanwha Philly Shipyard will build the vessel.

The LSM is an expeditionary landing ship that the U.S. Navy is introducing to conduct distributed operations in contested coastal areas, including the Indo-Pacific. Its mission is to transport and deploy Marine Corps personnel, equipment and supplies to coastal areas. TOTE Services selected Hanwha Philly Shipyard as the builder following a comprehensive assessment of safety, quality and delivery performance.

The contract is seen as marking an expansion of Hanwha Philly Shipyard's business into the full range of work from U.S. Navy vessel design to construction. In March, Hanwha Philly Shipyard joined Hanwha Defense USA's concept design project for the U.S. Navy's next-generation logistics support ship. In July, it was selected to build a maritime missile test and measurement vessel linked to the U.S. Golden Dome missile defense system.

The U.S. Navy and Marine Corps plan to acquire a total of 35 medium landing ships, with the first vessel in the program scheduled for delivery in 2030.

Potential follow-on contracts are also drawing attention. Hanwha plans to use this contract as a springboard to step up its entry into the U.S. naval vessel market, while continuing to train personnel and invest in production facilities in preparation for securing additional orders.

Michael Coulter, CEO of Hanwha Defense USA, said, "Since acquiring Philly Shipyard in 2024, we have made major investments in personnel and technology to establish a foundation for building vessels for federal government customers, including the U.S. Navy. We will work with TOTE Services to deliver the ship on schedule and within budget."

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