Hanwha Group Eyes Expansion of Philadelphia Shipyard
South Korea’s Hanwha Group is actively pursuing an expansion of its Philadelphia shipyard and considering acquisitions of additional U.S. shipyards. This strategic move comes in response to the growing demand for naval and uncrewed vessels, as reported by The Wall Street Journal. Michael Coulter, CEO of Hanwha Defense USA, revealed that discussions are underway with the Trump administration regarding potential contracts for building various types of vessels.
Plans for Expansion and Increased Production
In an interview, Coulter emphasized the need for more space to accommodate the rising demand for ship production. Hanwha’s 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 major naval shipyard, Philly Shipyard has recently been limited to producing only one or two vessels annually, operating with just two docks. Coulter stated that this capacity is insufficient to meet the anticipated increase in orders.
To address this challenge, Hanwha is in talks with federal, state, and local officials to explore options for expanding their operational capacity. This includes securing additional storage properties in the Philadelphia area and potentially accessing unused or underutilized docks nearby. The company aims to ramp up production to as many as 20 ships per year, which would significantly enhance its presence in the U.S. market.
Moreover, Hanwha is contemplating the acquisition of a second U.S. shipyard in a different region within the next few years. Coulter noted the unique timing in the industry, suggesting that now is an opportune moment for such expansions. While a Hanwha official confirmed the ongoing discussions, no specific plans have been finalized yet.
Strategic Partnerships and Future Prospects
Hanwha’s expansion efforts align with its commitment to the “Make American Shipbuilding Great Again” initiative, a South Korea-U.S. collaboration aimed at revitalizing the American shipbuilding sector. This initiative is backed by a $150 billion investment fund from the South Korean government, positioning Hanwha as a key industrial partner in this endeavor.
The Philly Shipyard has also been identified as a potential site for constructing South Korea’s future nuclear-powered submarines, following recent agreements between Seoul and Washington. While U.S. President Trump has suggested that these submarines should be built at the Philly Shipyard, South Korea has advocated for their construction domestically. Coulter affirmed that Hanwha possesses the capability to manufacture submarines in either location, with the final decision resting with the two governments.
Hanwha Philly Shipyard plans growth after $100 million purchase from Aker
In addition to its shipyard expansion, Hanwha Defense USA and Hanwha Systems recently 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. This move underscores Hanwha’s broader ambitions in the U.S. shipbuilding landscape.
