Hanwha Defense USA is planning to take control of the Philadelphia Shipyard, adding this facility to its defense sector in the United States. This move is part of the South Korean company's efforts to expand in the American military shipbuilding industry.
Contract Details
According to a legal filing in September 2023 in South Korea, this deal is valued at approximately $237.6 million and is scheduled for completion by October 31, 2023. Retired Admiral Tom Anderson, head of U.S. shipbuilding at Hanwha Defense USA, will oversee the operations of American shipbuilding.
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Michael Coulter, President and CEO of Hanwha Defense USA, stated: "As Hanwha Defense USA continues to grow in multiple areas in the United States, bringing the Philadelphia Shipyard under HDUSA will further align our efforts in building government and commercial vessels."
History and Evolution of Philadelphia Shipyard
The Philadelphia Shipyard faced serious challenges in 2019 after delivering its last container ship to Matson and finding its order book empty. With a decline in new construction contracts, the workforce at the shipyard shrank from nearly 1,200 at the beginning of 2018 to just 80 by July 2019.
To survive, the shipyard turned to government work and adopted a "gray" strategy. Its initial contracts included maintenance work on maritime readiness vessels, allowing it to rehire some laid-off workers and get its docks operational.
A real turning point came when the Philadelphia Shipyard was selected in April 2020 to build two National Security Multi-Mission Vessels (NSMV) under a $630 million contract. This program eventually expanded to five vessels, providing the necessary long-term production backing to rebuild the workforce.
Investment and Future
In August 2025, Hanwha announced plans to invest $5 billion in the shipyard, which includes additional docks, expanded shore facilities, and modern production capabilities. The long-term goal is to increase annual production capacity to a maximum of 20 vessels.
In September, Hanwha announced that the workforce at the shipyard had more than doubled after the acquisition, reaching nearly 2,500 people. The shipyard now has a significant commercial order book that includes three LNG-powered container ships for Matson and two LNG carriers for Hanwha Shipping.
The shipyard has also delivered four of the five NSMVs for MARAD and plans to deliver the fifth vessel in 2027. Recently, Hanwha received a new contract for military shipbuilding, leading to the construction of a new generation of missile tracking ships for the U.S. Missile Defense Agency.
Given recent developments, Hanwha is preparing the Philadelphia Shipyard to build ships directly for the U.S. Navy. This effort caught the attention of senior officials in September 2023.
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