Hanwha Group Vice Chairman Dong Kwan Kim delivers a welcome speech at the ship naming ceremony held at Hanwha Philly Shipyard, with South Korean President Lee Jae Myung and Pennsylvania Governor Josh Shapiro present. (Image courtesy Hanwha Group/Business Wire)
The company is investing to modernize infrastructure and create a digitally-enabled, high-efficiency shipyard with world-class automation and ‘smart yard’ technology.
PHILADELPHIA—Hanwha Group recently announced a $5 billion infrastructure plan for Hanwha Philly Shipyard as part of South Korea’s commitment to supporting growth of the U.S. shipbuilding industry through a $150 billion investment fund, the company said in a release.
The announcement was made in time for the christening of a new training vessel, the U.S. Maritime Administration’s (MARAD) third National Security Multi-mission Vessel (NSMV).
The naming ceremony at Hanwha Philly Shipyard was attended by South Korean President Lee Jae Myung, the First Lady, and other senior officials. Pennsylvania Governor Josh Shapiro and Senator Todd Young also joined the event.
The ceremony followed summit talks between President Lee and U.S. President Donald Trump. Earlier, the Lee administration had pledged $150 billion in American shipbuilding investments during a trade deal between Korea and the United States. Hanwha Philly Shipyard is expected to play a key role in future collaboration between the two countries.
South Korean President Lee Jae Myung, Pennsylvania Governor Josh Shapiro, Hanwha Group Vice Chairman Dong Kwan Kim, and key officials pose for a photo at Hanwha Philly Shipyard. (Image courtesy Hanwha Group/Business Wire)
In his welcome address, Hanwha Vice Chairman Dong Kwan Kim expressed gratitude to the leaders of both countries and emphasized the importance of joint partnership in bolstering the shipbuilding industry.
“Today’s christening ceremony is the embodiment of our two nations working side-by-side to reindustrialize for the sake of shared security and prosperity,” Kim said in the release. “We are creating good manufacturing jobs, building the world’s most advanced ships, and fostering a new skilled workforce right here in America. This is just the beginning. Hanwha is committed to being a partner in building the next chapter of American shipbuilding.”
Hanwha acquired Philly Shipyard in 2024 through a $100 million investment. In an effort to build a landmark hub for shipbuilding in America, the company is investing to modernize infrastructure and create a digitally-enabled, high-efficiency shipyard with world-class automation and “smart yard” technology, the release stated.
According to Hanwha, the $5 billion program will be dedicated to the installation of two additional docks, as well as three quays to increase capacity. The company is also reviewing the build-out of a new block assembly facility. Through this expansion, Hanwha aims to increase Philly Shipyard’s annual production volume from less than two vessels to up to 20.
“As a global leader in LNG vessels, Hanwha aims to produce LNG carriers, naval modules and blocks, and, in the long-term, naval vessels out of its U.S. shipyard,” the release stated.
In addition to the infrastructure plan, the U.S. subsidiary of Hanwha’s shipping arm, Hanwha Shipping, reported that it ordered 10 medium range (MR) oil and chemical tankers from its affiliate, Hanwha Philly Shipyard. The first tanker is expected to be delivered by early 2029, the company said in the release.
The vessels will be designed to support the U.S. Jones Act fleet renewal and other strategic initiatives. Hanwha Shipping also announced it has exercised its option to order a second liquefied natural gas (LNG) carrier from Hanwha Philly Shipyard. This followed Hanwha Shipping’s announcement in July that it signed a contract for the first U.S.-ordered, export-market-viable LNG carrier in almost 50 years.
Hanwha Ocean CEO Hee Cheul Kim and Hanwha Global Defense CEO Michael Coulter were also present at the christening ceremony.
“Through joint synergy between its world-class shipbuilder Hanwha Ocean and U.S. affiliate Hanwha Philly Shipyard, Hanwha looks to drive mutual growth across both markets, fostering job creation and the development of a robust industry ecosystem,” the release stated.