Hanwha Philly Shipyard has taken a further step toward its shipbuilding operations expansion in Philadelphia, Pennsylvania, after agreeing to lease an additional 47 acres at the Philadelphia Navy Yard in September 2026.
Approved by the Philadelphia Authority for Industrial Development, the 47-year, eight-month lease will provide additional space for shipbuilding facilities. The land will also be used for waterfront improvements, fabrication structures and logistics operations. This will go a long way in supporting the company’s ambition to scale production and expand its workforce.
The expansion follows Hanwha’s August 2025 announcement of a $5 billion investment plan to add two docks, three quays and potentially a new block assembly facility. Hanwha’s long-term goal remains to increase annual output from fewer than two vessels to as many as 20.
However, the broader expansion remains subject to funding and implementation challenges. Recently, disagreements over the financing of South Korea’s $150 billion US shipbuilding initiative have delayed the rollout of Hanwha’s planned investment. The additional land marks a significant step in securing the physical space required for expansion. However, the timing of major construction works and the full production-capacity upgrade remains uncertain. This is as another South Korean shipbuilding company, HD Hyundai, partners with US-based Kiewit to build a new shipyard in the US.
US$5Bn Expansion Plan by Hanwha for Philly Shipyard, Pennsylvania
Reported February 18, 2026 – 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. Advanced smart yard automation will also be integrated in the shipyard. Additionally, a new block assembly yard will also be built. 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.
US$5 Billion Investment Unveiled by Hanwha for Philadelphia Shipyard
Reported August 27, 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. This is 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. Kim also 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. This is as the U.S. tries to improve its key gateway for trade with Asia.
Hanwha Group Philly Shipyard Expansion: Project Fact Sheet
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
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