Hanwha bags 1st US Navy shipbuilding order
Hanwha Philly Shipyard / Courtesy of Hanwha Group
Contract provides momentum for MASGA initiative
Hanwha Group has won its first contract to build a warship for the United States Navy after its acquisition of Philadelphia-based Philly Shipyard in December 2024, marking a tangible step forward in the Korea-U.S. shipbuilding cooperation initiative known as Make American Shipbuilding Great Again (MASGA).
Hanwha Group said Sunday that Hanwha Defense USA has signed a $269 million (357.5 billion won) contract with TOTE Services to build a landing ship medium (LSM). TOTE Services is a vessel construction manager entrusted by the U.S. Navy with overseeing shipbuilding contracts and managing vessel construction.
The construction of the LSM is expected to begin in the fourth quarter of next year, and the contract also includes options for three additional vessels.
The LSM is an expeditionary landing vessel designed to support the U.S. Navy's operations in contested coastal areas, including the Indo-Pacific region. It is tasked with transporting and deploying Marine Corps personnel, equipment and supplies to coastal areas. The U.S. Navy aims to secure 35 LSMs.
The vessel measures 100 meters in length and 16 meters in width, with a light displacement of approximately 2,687 tons and a cruising range of about 7,400 kilometers.
An artist's impression of Damen's Landing Ship Transport-100, which was selected for the U.S. Navy's Landing Ship Medium Program and will be built at Hanwha Philly Shipyard / Captured from Damen's website
The U.S. Navy’s LSM program is based on the LST-100 design developed by Dutch shipbuilder Damen. The Navy plans to accelerate the initial deployment of the vessels by using an existing commercial design and building them simultaneously at multiple shipyards.
TOTE Services selected the shipbuilders through a competitive bidding process, evaluating their safety records, quality standards and track records for on-time delivery. Hanwha Philly Shipyard has maintained a longstanding partnership with TOTE Services, building and delivering four National Security Multi-Mission Vessels under the vessel construction manager model for the U.S. Maritime Administration.
Hanwha Defense USA has also deployed personnel to Philadelphia since early this year to support the shipyard's preparations for U.S. Navy projects.
Hanwha Group said the order bears significance as it demonstrates Hanwha Philly Shipyard's capabilities to build not only commercial vessels but also naval ships, laying a strategic foundation for expanding its business with the U.S. Navy.
Hanwha Group acquired Philly Shipyard for $100 million in 2024 and announced plans in 2025 to invest $5 billion in upgrading the shipyard's infrastructure.
In March, Hanwha Philly Shipyard and Hanwha Defense USA participated in the conceptual design of the U.S. Navy's Next Generation Logistics Ship. In July, the shipyard was also selected to build a Missile Range Instrumentation Vessel for the U.S. Golden Dome missile defense system.
In September, Hanwha also established a new subsidiary, Hanwha Defense USA Shipbuilding, to operate Hanwha Philly Shipyard and strengthen the group’s shipbuilding and naval defense businesses in the U.S.
With the latest order, Hanwha has expanded its involvement in U.S. Navy projects from ship design to construction.
"Since acquiring Philly Shipyard in 2024, Hanwha has made substantial investments in personnel and technology to establish a shipbuilding base capable of serving federal government customers, including the U.S. Navy," Hanwha Defense USA CEO Michael Coulter said. "We will continue working with TOTE Services to ensure the vessel is delivered on schedule and within budget."
President Lee Jae Myung speaks during the naming ceremony of the TS State of Maine vessel at Hanwha Philly Shipyard in Philadelphia, Aug. 27, 2025. Yonhap
The contract also carries significance as it marks a tangible achievement in warship construction just 15 months after Seoul proposed the MASGA initiative. Under the initiative, Korea agreed to commit $150 billion to bilateral shipbuilding cooperation to help rebuild the U.S. shipbuilding industry and strengthen its naval shipbuilding capabilities.
Last year, the U.S. announced plans to procure 364 new vessels by 2054, comprising 293 combat ships and 71 logistics and support vessels, as it seeks to strengthen its naval capability amid intensifying competition with China. Against this backdrop, industry officials said the latest contract served as a stepping stone to provide further momentum for future projects with Korean shipbuilders.
U.S. Senator Dave McCormick highlighted Hanwha's planned $5 billion investment in Philadelphia as an example of how cooperation with close U.S. allies can help rebuild America's shipbuilding capacity and strengthen its defense industrial base.
“Pennsylvania is leading the way as we rebuild American shipbuilding, bringing jobs, manufacturing and opportunity back to our state,” McCormick said. “Hanwha’s continued commitment to Philadelphia shows what is possible when we invest in American workers and American industry.”