What did Hanwha Defense USA win from Tote Services, and what does the contract include?

Tote Services selected HDUSA to build one medium landing ship at Hanwha Philly Shipyard in Philadelphia for $269 million. The contract includes options for three more vessels and was awarded through a competitive bidding process.

When will construction of Hanwha Defense USA’s Navy landing ship begin, and when is the first vessel expected?

Construction is scheduled to start in the fourth quarter of 2027. The first vessel in the program is expected to be delivered in 2030.

How does the landing ship contract fit into Hanwha’s expansion in US shipbuilding?

The contract marks HDUSA’s first U.S. Navy shipbuilding award. Hanwha acquired Philly Shipyard in 2024, and HDUSA is moving to acquire a controlling stake as the South Korean defense group seeks to expand its U.S. shipbuilding presence.

Hanwha Defense USA wins $269 mil. US Navy shipbuilding contract

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Summary

Hanwha Defense USA was selected by Tote Services on Thursday to build a medium landing ship for the U.S. Navy and Marine Corps at Hanwha Philly Shipyard in Philadelphia. The $269 million contract is HDUSA’s first U.S. Navy shipbuilding contract and includes options for three additional vessels. Construction is scheduled to begin in the fourth quarter of 2027, and the program’s first ship is expected to be delivered in 2030. The deal comes as HDUSA moves to acquire a controlling stake in the shipyard.

Key Facts

Tote Services’ $2.2 billion vessel construction manager contract supports a planned 35-ship medium landing ship fleet for the Navy and Marine Corps.
The shipyard was selected through a competitive bidding process under Tote Services’ vessel construction management program.
Hanwha acquired Philly Shipyard in 2024, and HDUSA President and CEO Michael Coulter said the company had invested in its workforce and technology since the acquisition.

By Yonhap

Published Oct 31, 2026 1:55 am KST

This photo captured from the website of Hanwha Defense USA shows Hanwha Philly Shipyard in Philadelphia. Yonhap

WASHINGTON — Hanwha Defense USA (HDUSA), a subsidiary of South Korea's Hanwha Aerospace Co., has secured a $269 million contract to build a medium landing ship (LSM) for the U.S. Navy and Marine Corps, marking its first U.S. Navy shipbuilding contract, according to the company.

The company said Thursday it was selected by U.S. maritime services firm Tote Services to build one LSM at Hanwha Philly Shipyard in Philadelphia, with options to construct three additional vessels.

The selection was made through a competitive bidding process under Tote Services' vessel construction management program, which oversees shipbuilding contracts for the U.S. Navy and Marine Corps.

"Since acquiring Philly Shipyard in 2024, Hanwha has made significant investments in its workforce and technology to pave the way to build ships for the U.S. Navy and other federal customers," HDUSA President and Chief Executive Officer (CEO) Michael Coulter said.

Construction is scheduled to begin in the fourth quarter of 2027.

Tote Services' $2.2 billion vessel construction manager contract supports the Navy and Marine Corps' planned 35-ship LSM fleet. The program's first vessel is expected to be delivered in 2030.

The announcement comes as HDUSA is moving to acquire a controlling stake in Hanwha Philly Shipyard, which Hanwha purchased in 2024, as the South Korean defense group seeks to expand its presence in the U.S. shipbuilding industry.

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