Hanwha Explores Expansion of Philly Shipyard Operations
Hanwha is actively considering the expansion of its Philly Shipyard in Philadelphia, Pennsylvania, as reported by The Wall Street Journal on October 8. The South Korean defense and aerospace company is in discussions with federal, state, and local officials to secure additional production facilities and land for logistics and storage in the Philadelphia area. This initiative aims to enhance shipbuilding capabilities and includes plans to access underutilized docks at local shipyards.
Michael Coulter, the newly appointed CEO of Hanwha Defense USA, emphasized the need for more space to meet growing manufacturing demands. Currently, the company operates two docks in Philadelphia, which Coulter believes will not suffice to fulfill future orders. He stated, “If order volumes exceed our own production capacity, we are also considering building ships by using docks at other shipyards.” This strategic move highlights Hanwha’s commitment to expanding its footprint in the U.S. shipbuilding industry.
Philly Shipyard’s Historical Significance and Future Prospects
The Philly Shipyard, acquired by Hanwha in December 2024, was once the largest naval shipbuilding base on the U.S. East Coast. However, following the Cold War, the shipbuilding industry in the U.S. experienced a significant decline, reducing the shipyard’s production capacity to approximately one vessel per year. Despite this downturn, Hanwha sees potential in revitalizing the shipyard and is considering acquiring a second shipyard in another region of the United States within the next few years.
Coulter described this period as “historically very special,” indicating a pivotal moment for Hanwha as it seeks to expand its operations. The company is also forming partnerships to enhance its technological capabilities. Recently, Hanwha partnered with Havoc AI, a U.S. company specializing in unmanned vessel software, to pursue a supply contract for the U.S. Navy’s unmanned surface vessels. The Trump administration has allocated over $3 billion for small and medium unmanned vessels, further incentivizing Hanwha’s expansion efforts.
Hanwha Philly Shipyard plans growth after $100 million purchase from Aker
Potential Role in Submarine Construction
In addition to its shipbuilding ambitions, the Philly Shipyard has been identified as a potential site for constructing South Korea’s nuclear-powered submarines, as per an agreement between South Korean and U.S. leaders. In October of the previous year, U.S. President Donald Trump designated the Philly Shipyard for this purpose. Coulter affirmed that Hanwha possesses the necessary capabilities to build submarines in both the United States and Korea, leaving the final decision to the respective governments.
As Hanwha navigates these developments, the company is poised to play a significant role in the future of U.S. naval capabilities. The expansion of the Philly Shipyard and potential acquisition of additional facilities could position Hanwha as a key player in the revitalization of the U.S. shipbuilding industry.
