Hanwha Group Unveils $5 Billion Investment in Philly Shipyard to Transform U.S. Shipbuilding

Hanwha Group's $5 Billion Investment in Philly Shipyard

In a landmark move for the U.S. shipbuilding industry, Hanwha Group has announced a transformative $5 billion infrastructure investment in Philly Shipyard. This initiative is a crucial part of South Korea's ambitious plan to inject a total of $150 billion into the U.S. shipbuilding sector. This strategic investment aims not only to enhance the production capabilities of Philly Shipyard but also to instate advanced technologies that will reinvigorate the American shipbuilding landscape.

The announcement comes alongside the celebration of the christening ceremony for a new training vessel, the U.S. Maritime Administration's third National Security Multi-mission Vessel (NSMV). This momentous occasion was graced by notable figures, including South Korean President Lee Jae Myung, Pennsylvania Governor Josh Shapiro, and Hanwha Group Vice Chairman Dong Kwan Kim, highlighting the collaborative commitment between South Korea and the United States.

Dong Kwan Kim, in his welcoming address during the ceremony, expressed gratitude towards the participating leaders and stressed the vital role of partnerships in cultivating a secure and prosperous shipbuilding industry. He stated, "Today's christening ceremony symbolizes the bond between our nations as we embark on reindustrialization for mutual security and growth. We are generating quality manufacturing jobs, constructing the world's most sophisticated ships, and nurturing a new skilled workforce in America." Kim further emphasized Hanwha's dedication to contributing to the future of American shipbuilding.

Having acquired Philly Shipyard for $100 million last year, Hanwha is set to transform it into a premier shipbuilding hub. The $5 billion funding will be utilized for the modernization of infrastructure, focusing on establishing a digitally-enabled and high-efficiency shipyard. To implement this project, two additional docks and three quays will be constructed to significantly bolster production capacity. Currently, Philly Shipyard's output is below two vessels per year, but Hanwha targets to ramp it up to 20 vessels annually.

Moreover, Hanwha aims to leverage its global leadership in Liquefied Natural Gas (LNG) vessel production to manufacture LNG carriers, naval modules, and, eventually, naval ships in the U.S. shipyard as part of its long-term vision.

In addition to infrastructure enhancements, Hanwha's shipping affiliate, Hanwha Shipping, has ordered ten medium-range (MR) oil and chemical tankers from Hanwha Philly Shipyard, with the first scheduled for delivery by early 2029. These vessels are crucial for supporting the renewal of the U.S. Jones Act fleet and other strategic undertakings in American maritime logistics. Hanwha Shipping has also exercised an option to procure a second LNG carrier from Philly Shipyard, marking a notable step in nearly 50 years for U.S-ordered export market-ready LNG carriers.

The christening ceremony also included the presence of Hanwha Ocean CEO Hee Cheul Kim and Hanwha Global Defense CEO Michael Coulter. With the synergy between Hanwha Ocean and Hanwha Philly Shipyard, the group aims to propel growth in both the U.S. and global markets, generating job opportunities while reinforcing a healthy industrial ecosystem.

Hanwha Group stands as South Korea's seventh-largest conglomerate, involved in various sectors, including aerospace, clean energy, and finance, with a focus on leveraging its expansive network for creating sustainable solutions. The invested shipyard, Hanwha Philly Shipyard, has established a reputation as a reliable supplier of ocean-going merchant vessels, contributing nearly 50% of all large U.S. Jones Act commercial ships delivered since 2000. Thus, with newly founded motivation and investments, the future of American shipbuilding appears promising and efficient.

For further details on Hanwha Group, please visit www.hanwha.com. More information regarding Hanwha Philly Shipyard can be found at hanwhaphillyshipyard.com.