Expansion of Philly Shipyard's Annual Shipbuilding Capacity to 20 Vessels
Hanwha Shipping Places Orders for 10 Tankers
First Achievement Since Launch of Korea-US Shipbuilding Cooperation
Hanwha Group will invest $5 billion (7 trillion won) in Hanwha Philly Shipyard in the United States, significantly increasing its annual shipbuilding capacity to 20 vessels. On the same day, Hanwha Shipping placed orders at the Philly Shipyard for medium-range tankers (MR tankers) and liquefied natural gas (LNG) carriers. This marks the first order received by the Philly Shipyard since the launch of the MASGA (Make American Shipbuilding Great Again) project, a Korea-U.S. shipbuilding industry cooperation initiative. With the modernization of the shipyard and an increase in domestic U.S. ship orders, a renaissance of the American shipbuilding industry is expected to begin in earnest.
On August 26 (local time), Hanwha officially announced this investment plan at the Hanwha Philly Shipyard in Philadelphia. The investment funds will come from a $150 billion shipbuilding industry cooperation fund agreed upon during Korea-U.S. trade negotiations. Utilizing this capital, Hanwha plans to expand additional docks and quay walls, establish a new 400,000-square-meter block production base, and increase its annual shipbuilding capacity from the current 1 to 1.5 vessels to 20 vessels. The range of vessels will also be diversified to include LNG carriers and naval ship blocks.
President Jae Myung Lee and Hanwha Group Vice Chairman Dong Kwan Kim are taking a commemorative photo at the naming ceremony of the "State of Maine" held at Hanwha Philippines Shipyard in the United States. From the left: David Kim, CEO of Hanwha Philippines Shipyard; Hyun Cho, Minister of Foreign Affairs; Josh Shapiro, Governor of Pennsylvania; Jae Myung Lee, President of the Republic of Korea; Dong Kwan Kim, Vice Chairman of Hanwha Group; Jung Kwan Kim, Minister of Industry and Trade; Todd Young, Senator of Indiana. Provided by Hanwha
In his welcome speech, Hanwha Group Vice Chairman Dong Kwan Kim stated, "We have taken the first step in shipbuilding industry cooperation that strengthens the Korea-U.S. alliance," adding, "As a reliable partner for the U.S. shipbuilding industry, Hanwha will create new investments and opportunities and play a pivotal role."
On this day, Hanwha Shipping placed orders for 10 medium-range tankers and 1 LNG carrier at the Philly Shipyard. This is the first substantial order contract related to the MASGA project. The first vessel is scheduled for delivery in 2029. This order also carries strategic significance as it aims to expand domestically built vessels in response to moves to amend U.S. maritime laws.
Industry experts believe this investment will serve as a catalyst for rebuilding the American shipbuilding industry. With the U.S. shipbuilding sector having declined for decades, the infusion of large-scale capital and technology from a Korean company is expected to effectively lead the "reconstruction of American shipbuilding." For Korean companies, securing a local shipyard provides a direct foothold in the U.S. maritime and defense industry markets. The investment is seen as strategically symbolic because it creates a win-win structure for both Korea and the United States.
Hanwha Group Vice Chairman Dong-Kwan Kim is delivering a welcome speech at the ship naming ceremony held on the 26th (local time) at the Hanwha Philly Shipyard in Philadelphia, USA, attended by President Jae-Myung Lee, Pennsylvania Governor Josh Shapiro, and others. Photo by Hanwha
At the end of last year, Hanwha Ocean (40%) and Hanwha Systems (60%) acquired the Philly Shipyard for $100 million. The shipyard serves as a strategic base for entering the U.S. commercial and naval shipbuilding markets and as a hub for Korea-U.S. shipbuilding cooperation. With this large-scale investment and order, the Philly Shipyard has become the core of the MASGA project.
Following the memorandum of understanding (MOU) between HD Hyundai and Samsung Heavy Industries the previous day, Hanwha's $5 billion investment means that all three major Korean shipbuilding companies are now participating in the U.S. shipbuilding revival project. An industry official commented, "Korea-U.S. shipbuilding cooperation means more than just orders or investments," adding, "It is evolving into a structure that shares the foundation of industrial and security alliances."
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