Hanwha Philly Shipyard Executive Briefing Held
Officializing Mid- to Long-Term Goal of Building Nuclear Submarines Beyond Commercial and Military Vessels
U.S. Aims for 66 Nuclear Submarines by 2054...Current Production Only 1.2 Per Year
Anderson: "Rapid Production Expansion Possible Using Existing Designs"
Wong: "Philly Shipyard to Support Strengthening Allied Nuclear Submarine Capabilities"
On the afternoon of the 22nd (local time), at Hanwha Philly Shipyard located in Navy Yard, Philadelphia, Pennsylvania, the construction of a national security multipurpose vessel was in full swing at Dock No. 4 (shipbuilding yard), which measures 330 meters in length and 45 meters in width. Simultaneously, container ship processes were underway just behind it. Only five months ago, the shipyard could build just one vessel per dock, but productivity has now improved to the point where one and a half ships can be constructed side by side. Starting next year, Hanwha plans to invest approximately 5 billion dollars to dramatically expand its annual shipbuilding capacity from the current 1 to 1.5 ships to as many as 20 ships.
Marking the first anniversary of Hanwha Philly Shipyard, which has emerged as a symbol of Korea-U.S. shipbuilding cooperation, Hanwha has officially announced its mid- to long-term goal of securing the capability to build U.S. Navy nuclear-powered submarines, going beyond commercial and military vessels. The company plans to gradually upgrade its production base, currently focused on commercial ships, to military vessels and nuclear-powered submarines. This aims to alleviate structural bottlenecks in the U.S. nuclear submarine supply chain and establish the shipyard as a strategic hub for Korea-U.S. security alliance cooperation.
On the 22nd (local time), shipbuilding work was underway at Hanwha Philly Shipyard located in Navy Yard, Philadelphia, Pennsylvania, USA. Photo by Kwon Haeyoung
On the 22nd (local time), shipbuilding work was underway at Hanwha Philly Shipyard located in Navy Yard, Philadelphia, Pennsylvania, USA. Photo by Haeyoung Kwon
"Establishing U.S. Nuclear Submarine Construction Capabilities at Philly Shipyard"...A Solution to Production Bottlenecks
Tom Anderson, President of Hanwha Defense USA Shipbuilding Division, revealed plans to build U.S. Navy nuclear submarine infrastructure at a media executive briefing held on the 22nd. He stated, "Hanwha Philly Shipyard has significant advantages in realizing joint nuclear submarine production with the United States' strongest ally, Korea." The briefing was also attended by David Kim, CEO of Hanwha Philly Shipyard, and Alex Wong, Chief Strategy Officer (CSO) of Hanwha Group Global.
Anderson, a former U.S. Navy admiral, cited the Virginia-class nuclear submarine, which the United States plans to expand its fleet of, as a representative example. The Virginia-class is a proven vessel type that the U.S. Navy has operated and constructed for an extended period, and the existing design allows for rapid production scale-up. He said, "We do not need to start from a new design, which will save significant time and effort. Specialized personnel for the Virginia-class submarines will be hired within the United States, and skilled Korean workers with extensive submarine construction experience will also be deployed on-site." He also emphasized the geographic proximity to the two shipyards in Connecticut and Virginia, which are currently building Virginia-class submarines, noting the advantages for collaboration and the transportation of parts and modules.
On the 22nd (local time), Tom Anderson, President of Hanwha Defense USA Shipbuilding Division (left), and Alex Wong, Chief Strategy Officer (CSO) of Hanwha Group Global, participated in a media briefing at Hanwha's Philippine shipyard and made remarks. Philadelphia=Photo by Kwon Haeyoung
The reason Hanwha has proposed Philly Shipyard as a base for nuclear submarine production lies in the structural bottlenecks in the U.S. nuclear submarine manufacturing sector. The United States aims to secure 66 Virginia-class nuclear submarines by 2054, but only 24 are currently in service. Achieving this goal requires building at least two submarines per year, yet actual production remains at about 1.2 per year. In addition, the United States must supply five submarines to Australia under the AUKUS (Australia, United Kingdom, United States) security alliance, and delays in maintaining existing vessels further exacerbate concerns about a potential capability gap in the 2030s. In this context, Philly Shipyard is emerging as an alternative hub that can help alleviate the bottleneck in U.S. nuclear submarine production. Recently, U.S. President Donald Trump mentioned Hanwha directly when discussing the U.S. Navy's next-generation frigate construction plans, which is interpreted as a sign of the shipyard's growing strategic value.
Step-by-Step Expansion through Simultaneous Construction of Commercial and Military Vessels..."Supporting Allied Nuclear Submarine Capabilities"
Alex Wong, CSO, stated, "Nuclear submarines are the most strategically superior means among existing maritime power assets," and added, "The United States is strongly committed not only to its own nuclear submarine capabilities but also to strengthening those of its allies." Referring to the AUKUS agreement launched in September 2021, he described it as "a cooperative framework to expand allied nuclear submarine capabilities and jointly develop new nuclear submarine designs," suggesting that submarines built at Philly Shipyard could be exported to global allies as well as the United States. He further noted, "Once preparations at the government level are complete, Philly Shipyard will be able to carry out nuclear submarine construction capabilities."
With the Korean government announcing plans to develop nuclear submarine hulls and reactors within the next 10 years, President Trump has stated that nuclear submarines should be built at Hanwha Philly Shipyard. In response, Hanwha explained, "We are pursuing a two-track strategy: Korean nuclear submarines will be built at Hanwha Ocean's Geoje facility, while U.S. nuclear submarines will be constructed at Hanwha Philly Shipyard."
However, there are significant challenges to overcome before Philly Shipyard can fully embark on nuclear submarine construction. Currently, only two shipyards in the United States are capable of building nuclear submarines, and Philly Shipyard must still secure dedicated docks and specialized personnel. Hanwha plans to gradually expand its workforce, invest in facilities, and enhance productivity, while actively utilizing the Korean shipbuilding supply chain to shorten submarine construction timelines and improve efficiency.
CEO David Kim commented, "We will leverage our accumulated competitiveness in the commercial ship sector to expand our capabilities to include military vessels such as naval ships." The intention is to accumulate technology, manpower, and processes step by step by building commercial and military vessels simultaneously, and then expand into nuclear submarine construction capabilities.
Regarding the handling of nuclear fuel during the construction process, it was explained that the U.S. government will directly provide the reactor compartment. Anderson stated, "Nuclear materials are already managed under strict controls and procedures, and Philly Shipyard will be subject to the same standards and regulations as existing U.S. nuclear submarine shipyards."
A Hanwha official said, "If nuclear submarine construction is realized at Philly Shipyard, incorporating domestic shipbuilding partners into the supply chain and accumulating technology could lay the foundation for the introduction of Korean nuclear submarines and accelerate technological self-reliance."
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