South Korea’s Hanwha Group has announced it will pump $5 billion into upgrading the infrastructure of the Philadelphia Shipyard that it purchased last year for $100 million, as part of a plan to expand the company’s global defense and shipbuilding activities.
The financial package was announced on Aug. 27 during South Korean President Lee Jae-myung’s visit to what is now the Hanwha Philly Shipyard. It coincided with the christening of the “State of Maine,” the U.S. Maritime Administration’s third National Security Multi-Mission Vessel.
The ceremony followed summit talks at the White House with President Trump. Earlier, the Lee administration had pledged $150 billion in American shipbuilding investments. The Hanwha Philly Shipyard is expected to play a key role in future collaborations between the U.S. and South Korea, officials said.
“The project I proposed to President Trump to make American shipbuilding great again is not just a vision to build huge warships and state-of-the-art vessels,” Mr. Lee said during the ceremony. “It is a grand vision to restore a dream that has disappeared.”
The $5 billion infrastructure investment will be used for the installation of two additional docks and three quays to increase capacity at the shipyard. The new owners are also reviewing plans for the construction of a new assembly facility.
The Hanwha Group says it plans to increase the Philly Shipyard’s annual production volume from fewer than two vessels to up to 20. Hanwha Shipping, a company subsidiary, has already ordered a liquified natural gas (LNG) carrier with an option for a second vessel. It will be the first U.S.-ordered, export market viable LNG carrier in almost 50 years, company officials said.
“This initiative aims to meet the growing demand for U.S. LNG carriers that are crewed by U.S. mariners and comply with rigorous U.S. Coast Guard standards,” the company said in a statement. “These vessels represent a resurgence in U.S. shipbuilding capabilities, buoyed by recent U.S. trade policies that require a growing percentage of LNG exports to be transported on U.S. vessels.”
The civilian Philadelphia Shipyard opened in 1997, about a year after the closure of the former Philadelphia Naval Shipyard. During World War II, some 40,000 employees operated on shifts around the clock to produce and repair ships needed for the war effort.
A “significant” portion of the construction for the early LNGs will be carried out at Hanwha’s shipyard in Korea. The Philly Shipyard will be responsible for U.S. Coast Guard regulatory compliance and safety certifications. Hanwha said it plans to gradually transfer its advanced shipbuilding technologies to the Philly Shipyard, enabling it to expand into high-value shipbuilding.
“Hanwha aims to offer a reliable, cost-effective solution to rising global demand, particularly amid heightened geopolitical tensions and increasing pressure on energy supply chains,” the company said.
The White House’s shipbuilding goals are focused on revitalizing the American maritime industry to counter China’s dominance and bolster U.S. national security.
In April 2025, President Trump signed “Restoring America’s Maritime Dominance,” an executive order laying out his administration’s key policy directives, including creating a comprehensive strategy for the country’s maritime sector, expanding the U.S. Navy fleet, and implementing new economic incentives and tariffs to support the domestic industry and penalize foreign competitors.
“We are creating good manufacturing jobs, building the world’s most advanced ships, and fostering a new skilled workforce right here in the United States,” Hanwha Vice Chairman Dong Kwan Kim said during the christening ceremony. “This is just the beginning. Hanwha is committed to being a partner in building the next chapter of American shipbuilding.”
Hanwha Shipping also ordered 10 medium-range oil and chemical tankers from the Philly Shipyard, with the first expected to be delivered by early 2029. The vessels will comply with the Jones Act, a federal law requiring that any ship transporting goods or passengers between two locations in the U.S. must be U.S.-built, U.S.-flagged, and crewed by U.S. citizens, company officials said.
“The opportunity to collaborate with the Philly Shipyard, a significant shipbuilder with a storied history, is an exciting strategic opportunity that will allow Hanwha Systems to deploy its state-of-the-art naval systems and associated technologies,” said Sung-Chul Eoh, the CEO of Hanwha Systems.
• Mike Glenn can be reached at mglenn@washingtontimes.com.