Hanwha Ocean to inject additional $70 mln into U.S. shipyard
Hanwha Ocean Boosts Investment in Philadelphia Shipyard
SEOUL, Aug. 25 (Yonhap) — Hanwha Ocean Co., a prominent South Korean shipbuilder, has announced plans to invest an additional $70 million to enhance its shipyard operations in Philadelphia. This investment is part of a broader strategy to penetrate the U.S. shipbuilding market, following the company’s acquisition of Philly Shipyard last year for approximately $100 million. The move aligns with Hanwha’s long-term objective of securing contracts with the U.S. Navy.
Expansion Plans and Strategic Goals
Hanwha Ocean aims to significantly increase the shipyard’s production capacity, targeting an annual output of eight to ten vessels by 2035. Currently, the shipyard produces between one and 1.5 ships annually. To support this growth, the company also plans to ramp up its annual sales from $400 million to an ambitious $4 billion over the same timeframe. The investment will play a crucial role in achieving these goals, although Hanwha Ocean has not yet officially confirmed the additional funding.
The Philly Shipyard, now under Hanwha’s management, marks a significant milestone as the first U.S. shipyard acquired by a South Korean shipbuilder. This acquisition is seen as a key element in fostering bilateral shipbuilding cooperation between South Korea and the United States, a partnership that has been dubbed “Make American Shipbuilding Great Again” (MASGA). U.S. President Donald Trump has emphasized the importance of revitalizing the domestic shipbuilding industry and has recognized South Korea’s expertise in naval vessel construction as a valuable asset in this endeavor.
Upcoming Diplomatic Engagements
In a related development, South Korean President Lee Jae Myung is scheduled to visit the Philly Shipyard on Tuesday, following his summit with President Trump in Washington. This visit underscores the growing collaboration between the two nations in the defense sector and highlights the strategic importance of the shipyard in enhancing U.S. naval capabilities. As both countries work together to strengthen their shipbuilding industries, the outcomes of these investments and diplomatic engagements will be closely watched by industry stakeholders and government officials alike.
