[Exclusive] Hanwha Presses Ahead Despite MASGA Delays, Plans to Expand U.S. Shipyard Workforce to 7,500

Maximum target workforce is five times current level

Concerns over delays amid scrutiny from U.S. Democrats

'Rebuilding the U.S. shipbuilding industry' is a bipartisan task

Hanwha continues to expand its training programs

Hanwha Group is pursuing a plan to increase the local workforce at its Philly Shipyard in the United States to as many as 7,500 within five years. The company intends to continue expanding production facilities and its workforce despite concerns that congressional checks on the Trump Administration after the U.S. midterm elections could delay the timeline for MASGA (Make American Shipbuilding Great Again), a shipbuilding cooperation project between South Korea and the United States.

According to industry sources on November 6, Hanwha is considering increasing the shipyard’s local workforce from about 1,500 currently to 4,000 within three years and 7,000 to 7,500 within five years. The maximum target is five times the current workforce. The company plans to adjust the scale and timing based on production growth and local labor supply conditions.

A view of Hanwha Philly Shipyard. Hanwha

The workforce expansion is closely linked to increasing shipbuilding capacity. Hanwha plans to raise the shipyard’s capacity from 1 to 1.5 ships per year currently to 5 to 6 ships within three years. Along with expanding production facilities and securing additional dry docks, it will boost productivity by dispatching skilled workers from South Korea and introducing smart shipyard technologies.

Since acquiring Philly Shipyard in 2024, Hanwha has been modernizing its facilities and expanding its equipment. The company plans to strengthen its production base by increasing commercial ship orders, then expand into building U.S. Navy vessels and providing maintenance, repair and overhaul (MRO) services.

The key variable is the pace of policy implementation after the U.S. midterm elections. There are concerns that Democratic control of Congress could intensify checks on the Trump Administration and delay the passage of budgets and legislation related to MASGA. Even if both parties agree on the policy goal of rebuilding the shipbuilding industry, differences could emerge in detailed discussions, including how funding is allocated and support is provided.

As a result, the shipyard investments Hanwha is pursuing on its own could move at a different pace from cooperative projects that require follow-up action by the U.S. government and Congress. This means that even as Philly Shipyard continues expanding its facilities and workforce, delays in MASGA support and regulatory reforms could affect the timeline for expanding its business.

Industry sources, however, believe that the likelihood of a major shift in the overall direction of rebuilding the U.S. shipbuilding industry is limited. With the gap in shipbuilding capacity between the United States and China widening, restoring the industry's competitiveness is a pressing task, directly tied not only to the commercial shipping supply chain but also to maintaining naval capabilities.

An industry official said, "The midterm election results are not favorable to the advancement of MASGA, but rebuilding the U.S. shipbuilding industry is a bipartisan issue related to national security. The pace may slow somewhat, but we do not expect the overall policy direction to change."

U.S. Senator Dave McCormick (third from left) poses for a commemorative photo with Hanwha Ocean President Jeong Inseop (second from right), head of the Management Support Office, and other company officials after touring production facilities during a visit to Hanwha Ocean's Geoje site on the 7th of last month. Hanwha Ocean, Yonhap News.

The key challenge at the shipyard is securing skilled workers. Even if dry docks and production facilities are expanded, this may not lead to an actual increase in shipbuilding output if there are not enough workers to operate them. Increasing hiring and training workers to become skilled enough to work on the production floor are separate challenges.

Hanwha is supporting technical training by dispatching 300 to 400 engineers and skilled workers from South Korea to the shipyard. Since it takes two to three years just to learn welding skills, the initiative is intended to supplement initial production capacity while improving the skills of the local workforce.

The company is also expanding its local training programs. The number of trainees in an apprenticeship program jointly run with the Philadelphia Metal Trades Council has grown from fewer than 80 before the acquisition to 120 currently. Starting next year, the company plans to select 240 trainees annually.

Hanwha also operates a skilled-worker training program with Delaware County Community College and has secured $8 million in job-training grants from the U.S. Department of Labor. In September, it took part in a career fair at the University of Delaware and recruited students.

Retaining trained workers at the shipyard is also important. High turnover among local workers can reduce the impact of training investments and increase uncertainty around production schedules. In adjusting its workforce expansion plans, Hanwha is taking into account not only hiring numbers but also training periods and working conditions that affect employee retention. An industry official said, "Turnover among local workers is high, and it is taking longer than expected to teach them the necessary skills. Since it is difficult to replace shipbuilding workers with physical artificial intelligence (AI) in the short term, securing skilled workers is a major challenge."

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