South Korea’s President to Boost U.S. Shipbuilding
South Korean President Lee Jae Myung is set to visit Hanwha Philly Shipyard next week, accompanied by key U.S. cabinet members, as the two nations engage in crucial discussions on trade, investment, and military contracts. This visit follows a meeting between Lee and former President Donald Trump in Washington, aimed at enhancing employment at the shipyard, which is the busiest commercial facility in the nation. Hanwha aims to more than double its workforce as part of its expansion plans.
Strengthening Economic Ties
The upcoming visit to Philadelphia will see President Lee joined by U.S. Transportation Secretary Sean P. Duffy, Labor Secretary Lori Chavez-DeRemer, and Sang H. Yi, the acting head of the U.S. Maritime Administration. Together, they will participate in the christening of the State of Maine, a multiuse ship built in Philadelphia based on Korean designs. This vessel is the fourth of five ships ordered from what was previously Aker Philly Shipyard in 2020, a project that has significantly boosted local employment from nearly zero to 1,700 workers, the highest number since the Philadelphia Naval Shipyard closed in 1996.
Despite its success in building ships for U.S. ports under the Jones Act, the Philadelphia yard faces challenges due to inconsistent orders, making it difficult to maintain a stable workforce. Hanwha officials express optimism about expanding the shipyard’s capabilities to construct and maintain its own fleet, ensuring job security for new trainees and addressing the industry’s recruitment difficulties. The visit symbolizes the strong economic cooperation and trust between South Korea and the United States, reinforcing the “Make American Shipbuilding Great Again” (MASGA) initiative, which includes significant South Korean investments in U.S. shipbuilding.
Plans for Expansion and Innovation
Hanwha, which acquired the shipyard in 2024, aims to ramp up production from 1.5 ships annually to at least 10 by 2034. To achieve this, the company plans to increase its workforce from 1,700 to over 4,000 and expand its facilities to secure government and military contracts. Hanwha is also seeking federal funding for facility upgrades and training programs, aligning with initiatives championed by Trump to revitalize U.S. shipbuilding.
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The company is committed to training a new generation of skilled laborers, including welders and shipfitters. Workers at Hanwha and neighboring facilities are represented by a coalition of metal trades unions, with the largest unions being the Boilermakers and Operating Engineers. Hanwha has announced plans to invest over $70 million in refurbishing a former dry dock and is exploring additional properties along the Delaware River for future expansion. The company aims to diversify its projects to include Navy submarines, drones, and liquid natural gas carriers.
Overall, Hanwha’s expansion efforts could increase annual sales of Philadelphia-built ships from less than $400 million in 2024 to an impressive $4 billion, as the company seeks to rejuvenate the shipbuilding industry in the U.S. amid growing competition from China, the world’s leading shipbuilder. A bipartisan group in Congress has reintroduced the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) Act to address concerns over U.S. reliance on foreign shipbuilders, aiming to bolster domestic ship construction through various incentives and funding strategies.
