Hanwha Group Eyes Expansion of Philadelphia Shipyard Amid Rising Demand
South Korea’s Hanwha Group is actively pursuing an expansion of its Philadelphia shipyard and considering the acquisition of additional U.S. shipyards. This strategic move comes in response to the increasing demand for naval and uncrewed vessels, as reported by The Wall Street Journal. Michael Coulter, CEO of Hanwha Defense USA, revealed that the company is in discussions with the Trump administration regarding potential contracts to produce surface, subsurface, and uncrewed vessels.
Coulter emphasized the need for more operational space to meet the growing demand. Hanwha affiliates, Hanwha Ocean and Hanwha Systems, acquired the Philly Shipyard in December 2024 for $100 million, marking their entry into the U.S. shipbuilding market. Historically a significant naval shipyard, Philly Shipyard has been limited to producing one or two vessels annually, operating with only two docks. Coulter noted that this capacity is insufficient to handle the anticipated increase in production volume.
To address these challenges, Hanwha is engaging with federal, state, and local officials to explore options for expanding capacity and securing additional storage properties in the Philadelphia area. Potential strategies include accessing underutilized docks nearby and utilizing facilities at other shipyards to manage excess orders.
Future Plans and Strategic Partnerships
In addition to expanding its Philadelphia operations, Hanwha is contemplating the purchase of a second U.S. shipyard in a different region within the next few years. Coulter remarked on the unique timing for such investments, indicating a favorable environment for growth in the shipbuilding sector. A Hanwha Group official in Seoul confirmed these discussions but noted that no specific plans have been finalized.
This expansion initiative aligns with Hanwha’s commitment to the “Make American Shipbuilding Great Again” project, a collaboration between South Korea and the U.S. aimed at revitalizing the American shipbuilding industry. Hanwha has emerged as a key industrial partner in this initiative, supported by a $150 billion South Korean government-backed investment fund established as part of a broader bilateral trade agreement.
The Philly Shipyard has been identified as a potential site for constructing South Korea’s future nuclear-powered submarines, following agreements between Seoul and Washington in October. While U.S. President Trump has advocated for the submarines to be built at the Philly Shipyard, South Korea has pushed for production to occur domestically. Coulter stated that Hanwha possesses the capability to manufacture submarines in either the U.S. or South Korea, with the final decision resting with the respective governments.
Recently, executives from Hanwha Group expressed confidence in the Philly Shipyard’s readiness to construct nuclear-powered submarines for the U.S. Navy. They highlighted ongoing efforts to enhance workforce capabilities, improve productivity, invest in facilities, and facilitate technology transfers.
Hanwha Philly Shipyard plans growth after $100 million purchase from Aker
As part of its broader U.S. shipbuilding strategy, Hanwha Defense USA and Hanwha Systems announced a partnership with Havok AI, a U.S. firm specializing in autonomous maritime systems. This collaboration aims to secure a contract to supply the U.S. Navy with hundreds of autonomous surface vessels capable of missile launches, cargo transport, and surveillance missions.
