US Congressman Visits Filipino Shipyard Acquired by Hanwha

Senator Kelly and Representative Mary Gay Scanlon
"Korea, Especially Hanwha, Is Essential for Rebuilding the Shipbuilding Industry"

U.S. Senator Mark Kelly of Arizona visited Hanwha Philly Shipyard located in Philadelphia, Pennsylvania, on the 18th (local time). Senator Kelly previously introduced the so-called ‘SHIPS for America Act,’ aimed at strengthening the U.S. shipbuilding industry.

U.S. Senator Mark Kelly of Arizona visiting Phili Shipyard. (Photo by Senator Kelly's official website)

According to Hanwha Ocean on the 20th, Senator Kelly visited the Philly Shipyard together with Arizona Representative Mary Gay Scanlon and emphasized that “the rebuilding of the U.S. shipbuilding industry should not be limited to naval vessel construction but must also include commercial shipbuilding and supply chain formation.” He stated that “cooperation with Korea, especially Hanwha, is essential” to achieve this. Philly Shipyard specializes in building commercial vessels operating along the U.S. mainland coast. Hanwha Systems and Hanwha Ocean signed a contract in June last year to acquire 100% ownership of Philly Shipyard for $100 million and completed the acquisition in December of the same year.

Senator Kelly led the introduction of the ‘Shipbuilding and Port Facilities Act for American Prosperity and Security’ in the 118th U.S. Congress. The bill pointed out that only 2% of goods imported into the U.S. are transported on U.S.-flagged vessels and aimed to expand the strategic fleet to 250 ships within the next 10 years. It emphasized the need for cooperation with allies such as Korea for this shipbuilding effort. Although the bill was discarded with the end of the congressional session, it increased the possibility of cooperation with the Korean shipbuilding industry, especially following supportive remarks from former President Donald Trump.

Senator Kelly toured the ‘State of Maine,’ one of the five National Security Multi-Mission Vessels (NSMV) ordered by the U.S. Maritime Administration (MARAD), and received a briefing on the advanced construction management method known as the VCM model. The vessel is scheduled to be delivered to the U.S. Maritime Academy by the end of this year and will serve as a training ship and a key vessel for federal emergency response.

Hanwha Group is also moving swiftly. Philly Shipyard, a strategic base for the North American shipbuilding and defense market, has begun preparations to obtain qualifications for maintenance, repair, and overhaul (MRO) and construction of U.S. Navy vessels. Additionally, Hanwha Ocean is expanding its commercial ship portfolio to maximize synergy with its Geoje shipyard.

Hanwha Group has embarked on establishing a mid- to long-term strategy that includes acquiring Facility Certification and Security (FCL) for Philly Shipyard. Hanwha Systems and Hanwha Ocean signed a contract in June last year to acquire 100% ownership of Philly Shipyard for $100 million and completed the acquisition in December of the same year.

Hanwha Group also plans to expand Philly Shipyard’s business. Philly Shipyard has a track record of supplying 50% of the commercial vessels built in the U.S., including petrochemical carriers (PC vessels) and container ships. To create synergy with Hanwha Ocean’s Geoje shipyard, which mainly secures orders for large vessels, Philly Shipyard is expected to broaden its portfolio focusing on medium-sized tankers and container ships.

The process of imprinting Hanwha Group’s identity on Philly Shipyard has also begun. The iconic Goliath crane at the shipyard, which previously bore the name ‘Aker Philadelphia Shipyard,’ has recently had the former owner’s name ‘Aker’ removed, and ‘Hanwha’ will be inscribed in its place. The color of the structure is also being changed from blue to Hanwha Group’s signature orange.

A Hanwha Ocean official stated, “Through the acquisition of Philly Shipyard, we plan to strengthen our position in the North American shipbuilding market and expand orders in the shipbuilding market. We will actively seek opportunities to secure orders for defense-related vessels, including MRO.”