Hanwha Defense USA has been selected as the first builder by the Todd Services to construct a medium landing ship (LSM) for the United States Navy and Marine Corps. This selection marks Hanwha Defense USA's first contract for shipbuilding for the U.S. Navy and is a key step for the Hanwha Group, which has been seeking government contracts since acquiring the Philadelphia shipyard in December 2024.
Contract Details and Plans
Todd Services has received a $2.2 billion contract for vessel construction management (VCM) to support the Navy and Marine Corps program to create a fleet of 35 ships of the McClung class. The VCM model, which began with the construction of five multi-purpose national security ships, requires Todd to oversee shipbuilding selection, design, construction, testing, delivery, and logistics throughout the lifecycle. Todd emphasizes that this model creates a responsible management structure that helps accelerate projects, manage, and control costs for the program.
Role of Hanwha Defense and Project Future
As VCM for the LSM program, Todd Services issued a competitive request for proposals (RFP) to qualified U.S. shipbuilders in July 2026. This concept is designed for amphibious ships 100 meters long (328 feet) and shallow-draft, capable of carrying approximately 250 Marines or about 500 to 800 tons of cargo.
Hanwha Defense USA (HDUSA) was selected as the first builder through the RFP process due to its competitive pricing and acceptance of Todd Services' terms and conditions. This contract includes the construction of one LSM valued at $269 million at the Hanwha Philadelphia shipyard, with options for three additional ships.
This contract demonstrates the speed at which the VCM model can move from RFP to contract. Todd Services announced that this program could include up to eight new ships under the base contract. Contract negotiations with Bollinger and Fincantieri Marinette Marine shipyards, both of which are under VCM contracts, are also ongoing.
The Hanwha Group also announced that Hanwha Defense USA will take majority control of the Philadelphia shipyard. Since the acquisition, another division of Hanwha, Hanwha Systems, has held 60% of the shares, with the remaining 40% owned by Hanwha Ocean.
