Hanwha Philly Shipyard at the Center of America’s Maritime Revitalization
The United States is placing renewed emphasis on strengthening its domestic manufacturing base, with shipbuilding standing out as one of the most strategically significant sectors. Shipbuilding underpins both economic growth and national security, yet the country still relies heavily on foreign-built vessels to transport energy supplies, even as it leads the world in liquefied natural gas (LNG) exports. This mismatch has prompted lawmakers to place shipbuilding higher on the national policy agenda. Initiatives such as the bipartisan SHIPS Act and the Maritime Dominance Executive Order are pushing for expanded domestic capabilities, while recent U.S. Trade Representative proposals regarding LNG carriers highlight the urgency of developing sovereign shipbuilding strength.
Fueling this momentum, Hanwha Group has unveiled a transformative $5 billion infrastructure plan to modernize and expand Hanwha Philly Shipyard into a next-generation hub for shipbuilding in the U.S. The project is backed by a broader $150 billion investment fund established by the South Korean government to support U.S. shipbuilding initiatives. Through this effort, Philly Shipyard is set to serve as a foundation for rebuilding supply chains, training skilled personnel, supporting ship construction, and overseeing maintenance, repair and overhaul (MRO) activities across the American maritime sector.
Revitalizing a historic shipyard
Hanwha finalized its acquisition of Philly Shipyard in late 2024, recognizing both its commercial potential and strategic importance to U.S. maritime trade. Since 2000, the yard has produced more than half of the nation’s large commercial vessels under the Jones Act, which underscores its central role in maintaining America’s maritime self-reliance.
“Philly Shipyard is a proven asset in the U.S. maritime industry, and our goal is to combine that strong foundation with world-class processes and technology to create the most advanced shipyard in the world,” said Dong Kwan Kim, Vice Chairman of Hanwha Group.
Hanwha’s $5 billion investment aims to increase output from one vessel per year to as many as 20 annually within the next decade. To accomplish this, the plan will expand assembly facilities, construction docks, and outfitting berths, ensuring each stage of shipbuilding is scaled in parallel.
Integrating smart shipbuilding technology
The transformation of Philly Shipyard is not limited to physical infrastructure. Hanwha intends to integrate cutting-edge technologies, including robotic welding, modular construction, automated inspection, and digital twin modeling. These innovations, adapted from Hanwha Ocean’s operations in Korea, will allow the yard to streamline workflows, reduce inefficiencies, and better manage production cycles. In addition to commercial opportunities, these capabilities will be essential in supporting U.S. naval defense projects.
“Hanwha’s commitment to Philly Shipyard demonstrates our belief in the importance of laying a strong foundation,” added Michael Coulter, CEO of Hanwha Global Defense. “We’re here to enhance sovereign capacity and deliver advanced technology that will support the needs of the U.S. commercial and defense sectors.”
Orders that signal a new era
In July 2025, Hanwha Philly Shipyard secured a landmark order from Hanwha Shipping for a new LNG carrier — the first export-market–ready LNG carrier ordered in the U.S. in nearly 50 years. Shortly after, Hanwha Shipping exercised an option to order a second vessel, with both ships set to comply with USTR requirements and be built under the U.S. flag. This effort will also transfer LNG carrier construction expertise from Korea to the U.S., helping the country build domestic capacity in one of the most technologically demanding ship segments.
Beyond LNG carriers, Hanwha Shipping has placed an order for 10 medium-range (MR) oil and chemical tankers. Scheduled for delivery beginning in 2029, the order is the largest U.S. commercial vessel contract in over two decades and represents the highest-value commercial order ever placed at a U.S. shipyard.
Expanding beyond traditional roles
Historically, Philly Shipyard has been known for producing Jones Act container vessels and supporting the National Security Multi-Mission Vessel (NSMV) program under the U.S. Maritime Administration. Now, with Hanwha’s investment, the yard is positioned to broaden its portfolio, supporting auxiliary shipbuilding, naval repair backlogs, and component production for larger defense and commercial projects.
Through infrastructure upgrades, workforce training, and expanded technology adoption, Hanwha Philly Shipyard is becoming a cornerstone of America’s maritime resurgence. As the U.S. pushes to reestablish its industrial leadership in global shipping and energy transport, the revitalization of this legacy shipyard highlights how public policy priorities and private-sector investment can align to rebuild sovereign shipbuilding capacity.
