Hanwha To Invest $5B At Philly Shipyard

Donald Trump’s plan to revitalize U.S. shipbuilding relies, in part, on a crucial partner: South Korean shipbuilder Hanwha, which bought an American shipyard in Philadelphia last November for $100 million and plans to make it a top producer of U.S.-made ocean-going vessels.

South Korea is the world’s second-largest shipbuilding nation, behind China, which began to overtake it in 2010. Hanwha, through its subsidiary Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering), is the third largest of Korea’s “Big Three” shipbuilding giants, alongside HD Hyundai Heavy Industries and Samsung Heavy Industries. Its place was secured following Hanwha Group’s acquisition of DSME in 2023, creating a new competitor in both the commercial and naval shipbuilding sectors.

On August 26, a naming ceremony was held for a new training vessel built for the U.S. Maritime Administration (MarAd) at Hanwha Philly Shipyard. The vessel, named the State of Maine, is the third National Security Multi-mission Vessel delivered to MarAd. The first two were built by Philly Shipyard before it was acquired by Hanwha.

South Korea President Lee Jae-myung was the featured speaker at the naming ceremony, which followed a summit meeting between Lee and Trump the day before. In his speech, Lee stressed the ties forged in war between the two countries.

“Philly Shipyard has a long history spanning more than 200 years,” Lee said. “About 50 warships that led the victory in World War II were built here, and some 500 warships set sail from here. Some 50,000 people have worked here to protect America’s seas.

“Warships from Philadelphia sailed to the rescue of Koreans when they suffered from the shelling of the Korean War,” he continued. “The Koreans established their country’s future as they rose from the ashes of the war and created the legend of ‘Korea, the shipbuilding powerhouse.’ Now Korea’s shipbuilding sector is embarking on a new journey to strengthen American maritime security and revive the American shipbuilding industry.”

Lee called Trump’s Make American Shipbuilding Great Again (MASGA) agenda a “win-win” for the United States and South Korea that could enable the shipbuilding industries of both countries to “take a leap forward together.”

Next Chapter

Kim Dong-kwan, vice chair of the Hanwha Group, took the occasion to champion Hanwha’s strategy for the “next chapter” at Philly Shipyard. Hanwha Group has pledged a $5 billion investment as part of Korea’s commitment to supporting the shipbuilding revival in the United States, part of a total $150 billion trade deal between South Korea and the United States. The investment in Hanwha Philly will include installing additional docks and quays to increase capacity. Hanwha is also reviewing the build-out of a new block assembly facility.

The company wants to increase the Hanwha Philly workforce from about 1,800 to 3,000 by the end of 2025, and to 4,000 over the next decade. The shipyard is actively hiring to meet expansion goals and training apprentices in various shipbuilding trades. Hanwha Philly has about 50 Korean supervisors and experts training the American workers in the latest techniques of modern shipbuilding, including the use of advanced robotics. The current staff includes both unionized and non-union roles. Union roles are represented by the Philadelphia Metal Trades Council (PMTC), an exclusive bargaining agent made up of nine unions, the largest being the Boilermakers and Operating Engineers.

Through this expansion, Hanwha aims to increase Philly Shipyard’s annual production volume from fewer than two vessels to up to 20. As a global leader in LNG vessels, Hanwha wants to produce LNG carriers, naval modules and blocks and, in the longer term, naval vessels out of its U.S. shipyard. This investment is expected to create thousands of additional indirect jobs in the region.

LNG Carrier

In July, Hanwha Shipping announced it is building the first U.S.-ordered, export-market-viable LNG carrier in nearly 50 years under a joint-build model with Hanwha Philly Shipyard. The last LNG carrier built in a U.S. shipyard was delivered in 1980, and the last remaining U.S.-built LNG carrier was scrapped in 2021. The new vessel will be built with advanced technology and efficient propulsion systems, showcasing Hanwha’s leadership in LNG carrier construction.

The LNG project is supported by U.S. regulations requiring more domestically built vessels for LNG exports to boost U.S. maritime industries. The vessel is scheduled for delivery in early 2028, and Hanwha has already announced plans to exercise an option for a second such vessel. A “significant portion”—some sources have estimated 80 percent—of the vessel will be built in South Korea in sections and finished and assembled at Philly Shipyard to meet U.S. requirements for “made in U.S.A.”

Hanwha Shipping also revealed it has ordered 10 medium range oil and chemical tankers from its shipyard in Philadelphia, with the first tanker expected to be delivered by early 2029. Hanwha is also completing a rock installation vessel for Great Lakes Dredge & Dock Corporation.

Partnership Praised

Proponents and supporters of the effort to revive U.S. shipbuilding praised the partnership with Hanwha. Sen. Dave McCormick (R-Pa.) applauded Hanwha Group’s investment in the greater Philadelphia area. McCormick is a cosponsor of the SHIPS for America Act of 2025, which invests in recruitment, training and retention of mariners and shipyard workers to rebuild the maritime workforce.

McCormick has visited Hanwha Philly Shipyard on multiple occasions, including with Transportation Secretary Sean Duffy in April.

“Hanwha Philly Shipyard already plays a critical role in American shipbuilding and is essential to the many Pennsylvanians who work there, but this investment is a gamechanger for the city, the commonwealth, our workers and the country,” McCormick said. “Thanks to the strong leadership of President Trump and his team, the rebuilding of our shipbuilding industry will begin right here in Philadelphia. I’m also grateful to DK Kim and his team at Hanwha for this incredible partnership. I look forward to working together and doing my part to secure the additional resources needed to maximize this critical investment so that we can restore America’s shipbuilding capacity, bolster our national security and economy and create high-paying jobs in Pennsylvania.”

Shipbuilding Office Relocated

In July, the Trump administration shifted its national shipbuilding office from the National Security Council to the White House Office of Management and Budget, as reported by several defense publications. The initial office was established as part of April’s “Restoring America’s Maritime Dominance” executive order.

Featured image caption: Kim Dong-kwan, vice chairman of Hanwha Group, delivers a welcome speech at the ship-naming ceremony held at Hanwha Philly Shipyard August 26, with South Korean President Lee Jae-myung and Pennsylvania Gov. Josh Shapiro present. (Photo courtesy of Hanwha)