The Philly Shipyard Expansion is a massive $5 billion strategic modernization initiative being developed in Philadelphia, Pennsylvania. Spearheaded by South Korea’s Hanwha Group, which acquired the shipyard for $100 million in 2024, the project aims to transform the facility into a central hub for revitalizing U.S. shipbuilding. The plan involves constructing two new docks and three quays, integrating advanced smart yard automation, and potentially developing a new block assembly yard. This overhaul is projected to scale annual production capacity from fewer than two vessels to as many as 20 ships, focusing on LNG carriers, naval modules, and ultimately full-scale naval vessels.

This resurgence of naval industrial capacity is also accelerating in Australia, where funding has been released for the $3.9 billion AUKUS submarine yard in Osborne. Managed by Australian Naval Infrastructure (ANI), this project will transform the Osborne Submarine Yard into a specialized precinct capable of manufacturing nuclear-powered SSN-AUKUS submarines, requiring deep-foundation civil works to support massive fabrication halls and creating 4,000 direct construction jobs.

Published 27th August 2025: Hanwha has unveiled a sweeping $5 billion shipyard expansion plan for Philly Shipyard, positioning it as a key hub in reviving the U.S. shipbuilding industry. The investment is part of a series of investments being undertaken by South Korea as part of a broader $150 billion bet on American shipbuilding first entered into as part of trade talks between the nations.

The announcement followed the christening ceremony of the U.S. Maritime Administration’s third National Security Multi-Mission Vessel (NSMV), a milestone event which was conducted amid summit negotiations between South Korean President Lee and United States President Donald Trump.

Hanwha Vice Chairman Dong Kwan Kim, speaking during the ceremony, described the significance of the alliance. He credited leadership from governments for creating stronger cooperation among industries and defined the project as a common effort to increase security and economic potential.

This christening ceremony today is a testament to our two nations collaborating side by side to reindustrialize for our common prosperity and security,” Kim said. “We are creating good-paying manufacturing jobs, building the world’s most advanced ships, and producing a new skilled workforce here in America. This is just the beginning. Hanwha is committed to building the next chapter in American shipbuilding.”.

Philly Shipyard Acquisition

Hanwha acquired Philly Shipyard a year ago for $100 million and has since then been focused on modernizing its operations. The company is employing novel automation and smart yard solutions to construct a high-efficiency, digitalized shipyard.

The just-opened $5 billion program also includes bids to construct two new docks and three quays, significantly boosting capacity. Hanwha is also exploring the construction of a new block assembly yard to boost production capacity. The improvements should take yearly production from fewer than two vessels to as much as 20, an extreme expansion of the yard.

As a global leader in liquefied natural gas (LNG) shipbuilding, Hanwha will utilize Philly Shipyard to construct LNG carriers, naval modules, and ship blocks, and ultimately build naval ships in the U.S. in the long term.

The investment is one of the most assertive foreign commitments to U.S. shipbuilding in recent years and confirms the status of Philly Shipyard as a center for U.S.–Korea industrial collaboration.

The Port of Long Beach is also undergoing major upgrades as the U.S. tries to improve its key gateway for trade with Asia.

Hanwha Group Philly Shipyard Expansion: Project Factsheet

Project Overview

Hanwha Group has announced a comprehensive $5 billion infrastructure investment to transform Philadelphia Shipyard into a central hub for U.S. shipbuilding industry revival. This initiative represents one of the most significant foreign investments in American shipbuilding in recent years.

Key Investment Details

Total Investment: $5 billion USD

Investor: Hanwha Group (South Korea)

Location: Philadelphia Shipyard, Pennsylvania

Timeline: Multi-phase expansion program (timeline TBD)

Acquisition Cost: $100 million (2024 acquisition of Philly Shipyard)

Strategic Context

Part of South Korea’s broader $150 billion commitment to American shipbuilding

Announced during U.S.-Korea trade summit discussions

Follows christening of MARAD’s third National Security Multi-Mission Vessel (NSMV)

Represents key milestone in U.S.-Korea industrial cooperation

Infrastructure Development Plan

Facility Expansions

Construction of 2 additional docks

Development of 3 new quays

Potential new block assembly facility

Advanced automation and smart yard technologies integration

Production Capacity Transformation

Current Output: Fewer than 2 vessels annually

Target Output: Up to 20 vessels annually

Capacity Increase: 10x production scale-up

Philly Shipyard Expansion: Project Phases

Phase 1: Facility modernization and automation (ongoing)

Phase 2: Dock and quay construction

Block assembly facility development (Phase 3)

Phase 4: Full-scale production ramp-up to 20 vessels annually