Hanwha to boost capacity at Philly Shipyard with $5 billion expansion

In a significant move to bolster its presence in the U.S. maritime industry, Hanwha Group has announced a $5 billion investment to expand capacity at Philly Shipyard. This initiative is part of a larger $150 billion shipbuilding strategy from South Korea, aimed at enhancing collaboration with the U.S. sector. The announcement was made during a ship-naming ceremony attended by notable figures, including President Lee Jae Myung and Pennsylvania Governor Josh Shapiro.

Expansion Plans and New Orders

The investment will dramatically increase Philly Shipyard’s production capabilities, raising its annual output from 1.5 vessels to 20. This expansion will involve the construction of two new docks, three quays, and a substantial 396,696-square-meter (98-acre) block assembly facility, which is currently under review. These enhancements are expected to position the shipyard as a key player in the U.S. shipbuilding market.

South Korean titans close $100 million US Shipyard acquisition

In addition to the expansion, Hanwha Shipping, the group’s U.S. subsidiary, has placed orders for ten medium-range oil and chemical tankers, along with one liquefied natural gas (LNG) carrier. The first of these tankers is scheduled for delivery in early 2029. This move aligns with ongoing discussions in Washington regarding potential revisions to Section 301 of the U.S. Trade Act and the Jones Act, which could require U.S.-flagged vessels for energy exports.

The LNG carrier contract is particularly noteworthy, as it follows Hanwha Shipping’s earlier order worth 350 billion won ($250 million), marking the first construction deal for a U.S. LNG carrier in fifty years. Hanwha Group’s acquisition of Philly Shipyard for $100 million last year, with Hanwha Ocean holding a 40 percent stake and Hanwha Systems 60 percent, has solidified its foothold in the U.S. shipbuilding landscape.