MELBOURNE — South Korea’s Hanwha Group announced a $5 billion plan to build additional infrastructure at Hanwha Philly Shipyard in Philadelphia as part of South Korea’s commitment to boost US shipbuilding capability.
The investment will be used for the installation of two additional docks and three quays to increase capacity at Hanwha Philly, according to the announcement. The company is also reviewing the build-out of a new block assembly facility at the shipyard, which it hopes will annual production volume tenfold, from less than two vessels to up to 20.
Hanwha announced the infrastructure plan Tuesday following a naming ceremony for the US Maritime Administration’s (MARAD) third National Security Multi-mission Vessel (NSMV) at Hanwha Philly Shipyard.
The ceremony for the ship, which would be used by MARAD as a training vessel, was attended by South Korean President Lee Jae Myung, Pennsylvania Gov. Josh Shapiro, Sen. Todd Young and other senior officials.
Speaking at the ceremony, Hanwha Vice Chairman Dong Kwan Kim emphasized the importance of joint partnership in bolstering the shipbuilding industry.
“Today’s christening ceremony is the embodiment of our two nations working side by side to reindustrialize for the sake of shared security and prosperity,” said Kim, according to the announcement. “We are creating good manufacturing jobs, building the world’s most advanced ships, and fostering a new skilled workforce right here in America.”
This investment in Hanwha Philly Shipyard is part of a $150 billion pledge to American shipbuilding by South Korea signed by the two countries in a deal in July.
The shipyard is expected to play a key role in future collaboration between the US and South Korea and will produce Liquefied Natural Gas carriers, naval modules and blocks, and in the long-term, naval vessels.
It will also build 10 medium-range oil and chemical tankers for the US subsidiary of Hanwha’s shipping arm, Hanwha Shipping. The first tanker is expected to be delivered in 2029 and will be designed to support the Jones Act — which requires goods transported by water between two US ports to be carried on vessels that are built, flagged, crewed and owned in the US — as well as fleet renewal and other strategic initiatives.
Hanwha acquired the shipyard for $100 million in 2024, and said in today’s announcement that it plans to transform it into a digitally-enabled, high-efficiency shipyard with world-class automation and smart shipyard technology through its investments.
Hanwha shipyards in South Korea have also maintained and overhauled US naval vessels. Hanwha Ocean previously completed the overhaul of the Military Sealift Command’s dry cargo ship USNS Wally Schirra in March. And it has won contracts for the overhaul of the oiler USNS Yukon and another dry cargo ship, the USNS Charles Drew.
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Author: Mike Yeo
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