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Hanwha doubles Philadelphia shipyard workforce in Navy shipbuilding push

Hanwha doubles Philadelphia shipyard workforce in Navy shipbuilding push

Money Moves

Hanwha Defense USA takes control of the yard as TOTE names it to build Navy landing ships

October 30th, 2026: TOTE names Hanwha Defense USA for Medium Landing Ship construction

Overview

Updated Oct 31

TOTE Services, which holds the Navy's $2.2 billion Landing Ship Medium contract, named Hanwha Defense USA on October 30 as the first shipyard for that work. Hanwha has also moved the Philadelphia yard it bought in December 2024 under the control of its US defense arm.

Hanwha Systems is selling its 60% stake to a Hanwha Defense USA-led joint venture for $237.6 million; Hanwha Ocean keeps 40%. The group has spent about $350 million upgrading the yard and authorized $400 million more through 2027, aiming for combat ship certification by 2028.

Why it matters

The US Navy needs hundreds of new ships to counter China, and this Korean investment tests whether foreign capital can build them.

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Key Indicators

2,500
Shipyard workforce
More than doubled since Hanwha acquired the yard in 2024
$5B
Pledged investment
Hanwha's total commitment to expand US shipbuilding capacity
$350M
Facility upgrades since 2024
Spent on the Philadelphia yard since the December 2024 acquisition, as reported in October 2026
$237.6M
Price of 60% stake transfer
Hanwha Systems' sale to a Hanwha Defense USA-led joint venture
1 per 8 months
Current production rate
The yard currently finishes a ship every eight months

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People Involved

Hung Cao
Hung Cao
Acting Secretary of the Navy
Toured Hanwha Philly Shipyard in September 2026
MC
Michael Coulter
CEO of Hanwha Defense USA
Leading Hanwha Defense USA as it takes control of the Philadelphia yard
DK
David Kim
CEO of Hanwha Philly Shipyard
Overseeing the yard's expansion
 Chris Coons
Chris Coons
US Senator (D-Del)
Joined the Navy Secretary's tour

Organizations Involved

Hanwha Defense USA
Hanwha Defense USA
Defense contractor
Taking control of Hanwha Philly Shipyard and named to build Navy landing ships

American subsidiary of South Korea's Hanwha Group, focused on defense and shipbuilding.
Hanwha Philly Shipyard
Hanwha Philly Shipyard
Shipyard
Moving under Hanwha Defense USA control as Navy landing ship work is assigned

The Philadelphia shipyard Hanwha acquired from Norway's Aker in 2024.
United States Navy
United States Navy
Military service branch
Seeking to expand fleet and shipbuilding capacity

The US naval service, working to expand its fleet and rebuild domestic shipbuilding capacity.

Timeline

2024 October 2026

10 events Latest: October 30th, 2026 · 1 week ago
Tap a bar to jump to that date

  1. TOTE names Hanwha Defense USA for Medium Landing Ship construction

    Latest Contract

    TOTE Services announces its first shipyard selection under the Navy's Landing Ship Medium contract, naming Hanwha Defense USA. TOTE says additional shipyard selections are planned.

  2. Hanwha Defense USA to take controlling stake in Philly Shipyard

    Acquisition

    Hanwha Systems agrees to sell its 60% stake in Hanwha Philly Shipyard to a Hanwha Defense USA-led joint venture for $237.6 million. Hanwha Ocean keeps its 40%.

  3. Report: Hanwha has spent about $350M upgrading Philly Shipyard

    Investment

    The Wall Street Journal reports Hanwha has spent roughly $350 million on facility improvements since December 2024 and authorized $400 million more through the end of 2027, with a target of combat ship certification by 2028.

  4. Hanwha announces workforce doubled to nearly 2,500

    Announcement

    Hanwha says the Philadelphia shipyard workforce has more than doubled since 2024, with investments in training and production capacity.

  5. Navy Secretary tours Hanwha Philly Shipyard

    Visit

    Acting Navy Secretary Hung Cao tours the yard, meets executives, and discusses industrial investment and workforce expansion.

  6. Presidential memorandum opens door for foreign shipbuilders

    Policy

    Memorandum establishes a pathway for foreign shipbuilders to construct vessels overseas before shifting production to the US, with investment and technology transfer requirements.

  7. Hanwha picked for Golden Dome missile defense ships

    Contract

    Hanwha Philly Shipyard and TOTE Services selected to build the Missile Defense Agency's next-generation Missile Range Instrumentation Vessels.

  8. US pledges $1.5 billion for new MARAD ships

    Policy

    US pledges $1.5 billion for new National Security Multi-Mission Vessel orders at the Philadelphia yard.

  9. Navy awards Landing Ship Medium contract to Tote Services

    Contract

    The Navy awards Tote Services a $2.2 billion contract for up to eight Landing Ship Medium vessels for the Marines. Tote later picks Hanwha Defense USA as a builder under the award.

  10. Hanwha acquires Philadelphia shipyard

    Acquisition

    Hanwha buys the former Navy yard from Norway's Aker for $100 million.

Scenarios

1

Hanwha wins Navy oiler contract, returns naval shipbuilding to Philadelphia

Possible Resolves by Q2 2027

Discussed by: The Philadelphia Inquirer, gCaptain

The Navy plans to build new fleet oilers, and Hanwha has applied with partners. A win would mark the first Navy ship construction at the Philadelphia yard since the base closed in 1994. It would validate Hanwha's $5 billion investment strategy and could trigger the yard's full expansion.

2

Hanwha completes Austal USA acquisition, expands US naval footprint

Possible Resolves by Q1 2027

Discussed by: gCaptain

Hanwha made a preliminary offer valued at up to $1.2 billion for Austal USA, which builds Navy and Coast Guard vessels in Alabama. The acquisition would give Hanwha control of two major US shipyards and significantly expand its exposure to US naval programs. It would also face regulatory scrutiny over foreign ownership of defense assets.

3

US and South Korea reach shipbuilding funding deal

Possible Resolves by Jan 31, 2027

Discussed by: The Philadelphia Inquirer

The US, South Korea, and Hanwha are negotiating who pays for the $5 billion expansion under the Make American Shipbuilding Great Again initiative. A deal would unlock the yard's full expansion and enable it to compete for major Navy contracts. Without one, the expansion proceeds slowly with Hanwha's own capital.

4

Hanwha starts building Landing Ship Medium vessels at the Philadelphia yard

Likely Resolves by Q2 2027

Discussed by: TOTE Services, Hanwha Defense USA

TOTE Services named Hanwha Defense USA on October 30 as a builder under the Navy's $2.2 billion contract for up to eight Landing Ship Medium vessels, and said further shipyard selections would follow. If Philadelphia gets hulls assigned, it would be the yard's first Navy construction work since the base closed in 1994.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1994

Philadelphia Navy Yard closure (1994)

The Navy closed its Philadelphia base in 1994 after more than 190 years of shipbuilding there. The yard had built warships from the age of sail through the Cold War.

Then

Thousands of workers lost jobs, and the Navy consolidated shipbuilding in a handful of private yards.

Now

The site became a business park, and commercial shipbuilding continued under private owners, but no Navy warship has been built there since.

Why this matters now

Hanwha's push to build Navy ships at the same yard would reverse a 30-year gap in naval shipbuilding at the site.

1980s

Japanese auto investment in the US (1980s)

Facing trade tensions and export restrictions, Japanese automakers including Honda, Toyota, and Nissan built assembly plants in the US. Honda opened its first US plant in Marysville, Ohio, in 1982.

Then

The plants created tens of thousands of American jobs and helped defuse trade tensions.

Now

Japanese automakers became major US manufacturers, producing millions of vehicles annually in American plants.

Why this matters now

The same pattern of foreign investment reviving US industrial capacity is now playing out in shipbuilding.

1945-present

US shipbuilding decline since WWII (1945-present)

The US built thousands of ships during World War II, with peak production exceeding 100 ships per month. By the 21st century, US commercial shipbuilding had collapsed, and Navy shipbuilding slowed to a handful of vessels per year.

Then

The US lost most of its commercial shipbuilding capacity to Asian competitors.

Now

The Navy now faces a fleet shortfall against China's growing navy, with US yards struggling to keep pace.

Why this matters now

This decline is why the Navy is turning to foreign investment and expertise to rebuild capacity.

Sources

(16)
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Hanwha Defense USA Defence Industry EU gCaptain The Korea Herald ExecutiveBiz Philadelphia.Today The Philadelphia Inquirer Maritime Briefs PR Newswire Baird Maritime Seapower Magazine PortNews Yonhap News Agency The Philadelphia Inquirer The Philadelphia Inquirer The Korea Herald