South Korea’s Hanwha to Invest $5B in Philly Shipyard Expansion, Add 10 New Tankers

South Korean conglomerate Hanwha Group has announced a $5 billion infrastructure plan for Hanwha Philly Shipyard-. as part of South Korea’s broader $150 billion commitment to revitalizing the American shipbuilding industry.

In a related development, Hanwha Shipping’s U.S. subsidiary has placed orders for 10 Jones Act-compliant medium-range oil and chemical tankers from Hanwha Philly Shipyard, with the first vessel expected for delivery by early 2029. The company has also exercised an option for a second LNG carrier, following last month’s contract for what will be the first U.S.-ordered, export-market-viable LNG carrier in almost five decades.

The announcement coincided with the christening ceremony of the U.S. Maritime Administration’s third National Security Multi-mission Vessel, T/S State of Maine, at the Philadelphia facility on Tuesday.

The high-profile ceremony was attended by South Korean President Lee Jae Myung, alongside senior U.S. government officials including Pennsylvania Governor Josh Shapiro. The event followed summit talks between President Lee and U.S. President Donald Trump on Monday, underscoring the strategic importance of this maritime partnership.

“Today’s christening ceremony is the physical embodiment of our two nations working side by side to re-industrialize industry, expand our capacity to build ships, and invest in the skilled workforce that will drive the industry forward,” said Hanwha Vice Chairman Dong Kwan Kim. “This is just the beginning. Hanwha is committed to being a partner in building the next chapter of American shipbuilding.”

The ambitious infrastructure program aims to dramatically increase the shipyard’s production capacity through the installation of additional docks and quays, with plans to review the construction of a new block assembly facility. These enhancements could potentially increase Hanwha Philly Shipyard’s annual production from fewer than two vessels to up to 20.

As a global leader in LNG vessel construction, Hanwha intends to focus on producing LNG carriers, naval modules and blocks at the facility, with long-term plans to expand into naval vessel production.

The investment comes at a critical juncture for the American maritime industry. On April 9, 2025, President Trump signed an executive order titled “Restoring America’s Maritime Dominance,” aimed at revitalizing domestic shipbuilding capabilities in both commercial and military sectors. The initiative addresses the stark reality that U.S. shipbuilders currently produce a minute of the world’s ships, compared to China’s dominant 74% market share.

In July, South Korea launched the “Make America Shipbuilding Great Again” initiative, a partnership worth approximately $150 billion led by South Korean shipbuilders. The MASGA project encompasses the construction of new shipyards in the U.S., training of shipbuilding personnel, and U.S. Navy ship maintenance.

Hanwha Philly Shipyard has built approximately 50% of all large ocean-going U.S. Jones Act commercial ships since 2000.

“Hanwha Philly Shipyard already plays a critical role in American shipbuilding and is essential to the many Pennsylvanians who work there, but this investment is a gamechanger for the city, the commonwealth, our workers, and the country,” said U.S. Senator Dave McCormick. “Thanks to the strong leadership of President Trump, Secretary Lutnick, Secretary Duffy, U.S. Trade Representative Jamieson Greer, and their teams, the rebuilding of our shipbuilding industry will begin right here in Philadelphia.”

Hanwha acquired Philly Shipyard last year through a $100 million investment, establishing what it describes as a landmark hub for American shipbuilding and the first Korean shipbuilder to establish operations in the United States. The company is now investing in modernizing the shipyard’s infrastructure with digitally-enabled, high-efficiency technologies, including world-class automation and smart yard systems.

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