Hanwha Group 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
