K-Shipbuilding Takes Root in the U.S.: "We Will Build 10 Ships Annually," Igniting a Revival in the American Shipbuilding Industry [Report]

A symbol of Korea-U.S. shipbuilding cooperation, Hanwha Philly Shipyard field report
Arcadia launched six months ahead of schedule with Hanwha DNA
The orange Goliath crane now bears the 'Hanwha' logo
Annual shipbuilding capacity to increase from 1 to 10 vessels within five years
From a declining shipyard to a forward base for the revival of the U.S. shipbuilding industry

On the afternoon of July 16 (local time), at Hanwha Philly Shipyard located in the Philadelphia Navy Yard, Pennsylvania, USA, the Arcadia, a subsea rock installation vessel, was quietly gliding away on the calm river. Although this was Hanwha's second vessel launch since acquiring the shipyard for $100 million at the end of 2024, it carried special significance. Hanwha began block assembly of this vessel at the beginning of this year, immediately after the acquisition, and completed the launch in July?five months ahead of the originally scheduled December date.

The interior of the shipyard has already been transformed with Hanwha's identity. The existing blue Goliath crane has been repainted in Hanwha's signature orange, and the 'Hanwha' logo is clearly displayed. In the 330-meter-long, 45-meter-wide dock, blocks moved by the crane are being assembled as Hanwha constructs the National Security Multi-Mission Vessel (NSMV), an order from the U.S. Maritime Administration (MARAD). The launch ceremony at Hanwha Philly Shipyard?the first case of a Korean company acquiring a U.S. shipyard?and the towering orange Goliath crane symbolically showcase the competitiveness of K-shipbuilding, which is expected to contribute to the revival of the American shipbuilding industry.

On the 16th (local time), construction work for the National Security Multi-Mission Vessel (NSMV) was in full progress at Hanwha Philippines Shipyard Dock 4 located in Philadelphia, Pennsylvania, USA. In the background, the Arcadia is being launched. Photo by Hanwha Ocean

Hanwha aims to build 10 ships per year by 2030

On the 16th (local time), employees were busy working in front of the main building of Hanwha Philly Shipyard located in Philadelphia, Pennsylvania, USA. Photo by Hanwha Ocean

Hanwha is positioning Philly Shipyard as a strategic base for entering the North American market and is focusing on maximizing productivity to target the growing demand for naval and commercial vessels in the United States. The company aims to increase its current shipbuilding capacity of 1 to 1.5 vessels per year to more than 10 vessels annually in the mid-to-long term. Lee Jongmu, Head of Hanwha Philly Shipyard, stated, "We will introduce the Hanwha Ocean system, which builds more than 40 ships per year, to upgrade Philly Shipyard's facilities, and some automation technologies will be implemented here before Korea. Through these measures, we will dramatically improve production speed and process efficiency, enabling us to build more than 10 ships per year by 2030."

Philly Shipyard currently processes 15,000 tons of blocks per year across two docks. This is lower than the 25,000-ton processing capacity for the same area at Korean shipyards. To address this, Hanwha plans to improve block installation speed, introduce high-speed welding machines, and expand automation facilities to raise production efficiency to Korean standards. The contract amount per ship is about $400 million, and with expanded production capacity, annual sales of $4 billion are expected within the next five years.

Regarding this, David Kim, CEO of Hanwha Philly Shipyard, emphasized, "Capital expenditure (CAPEX) in the first quarter of this year has already surpassed the total for last year, and the annual investment for this year is expected to exceed the total investment of the past 10 years. Through comprehensive investments in facilities and personnel, we will dramatically enhance our shipbuilding capabilities."

Currently, Hanwha Philly Shipyard's order backlog consists of a total of seven vessels, including NSMV and container ships. A Hanwha representative explained, "We are currently building only commercial vessels, but in the future, we plan to prepare for supplying naval ship blocks or modules and building naval vessels." To construct U.S. naval ships, a government license is required, and the related procedures are currently underway.

Securing labor to improve production capacity is also a challenge. Hanwha Ocean has dispatched over 50 engineers to support assembly and quality improvement. At the same time, Philly Shipyard is directly training welders. Currently, more than 170 apprentices are being trained at the shipyard's own training center.

On the 16th (local time), an apprentice was practicing welding at Hanwha Philly Shipyard located in Philadelphia, Pennsylvania, USA. Photo by Kwon Haeyoung

On the 16th (local time), David Kim, CEO of Hanwha Philshipyard, held a meeting with the Korean correspondents. Photo by Hanwha Ocean

A symbol of Korea-U.S. shipbuilding cooperation... A forward base for the revival of the U.S. shipbuilding industry

Hanwha Philly Shipyard is emerging not just as a bridgehead for entry into the U.S. market, but as a symbolic site for the revival of the U.S. shipbuilding industry and Korea-U.S. industrial cooperation. The United States, which once boasted the world's strongest navy and shipbuilding technology, is now experiencing a prolonged slump across its shipbuilding sector. According to BRS Shipbrokers, over the past 10 years, China has built 6,765 commercial vessels, Japan 3,120, and Korea 2,405, while the U.S. has built only 37 commercial ships.

In this situation, the U.S. is seeking to enhance its shipbuilding competitiveness to counter China. In November last year, then President-elect Donald Trump requested shipbuilding technology cooperation from President Yoon Suk-yeol during a phone call. Lacking sufficient production infrastructure, the U.S. sees Korea as a reliable ally and a partner with proven technology and mass production experience. In this process, Hanwha is expected to play a key role in the U.S. shipbuilding revival strategy.

Currently, the U.S. Congress has proposed the "Shipbuilding Strengthening Act," aiming to secure 250 strategic vessels over the next 10 years and to transport 15% of liquefied natural gas (LNG) exports on U.S.-built ships by 2047. Including the demand for naval vessels, more than 200 new ships are expected to be needed. In addition, protectionist laws that contributed to the decline of the U.S. shipbuilding industry?such as the Jones Act and the Burns-Tollefson Amendment?mandate that military and various other ships be built domestically, making Hanwha's establishment of a local production base a strategic turning point.

Hanwha Ocean plans to use its expansion in the U.S. market as an opportunity to encourage Korean small and medium-sized shipbuilding and equipment companies to enter the market together, thereby strengthening the domestic shipbuilding ecosystem. Jung Insub, CEO of Hanwha Ocean, stated, "Through Korea-U.S. shipbuilding cooperation, the entire Korean shipbuilding ecosystem can secure global competitiveness. We will transfer both technology and production capabilities to create a new shipbuilding model in the United States."