South Korea’s Hanwha Group has announced a significant $5 billion investment plan for the Hanwha Philly Shipyard, marking a crucial step in South Korea’s broader $150 billion initiative to rejuvenate the American shipbuilding sector. This investment comes alongside the order of 10 medium-range oil and chemical tankers, expected to enhance the shipyard’s production capabilities dramatically. The announcement was made during a ceremonial event that highlighted the growing maritime partnership between the U.S. and South Korea.
The ambitious infrastructure plan aims to transform Hanwha Philly Shipyard into a leading hub for shipbuilding in the United States. The investment will fund the installation of additional docks and quays, as well as the potential construction of a new block assembly facility. These enhancements are projected to increase the shipyard’s annual production capacity from fewer than two vessels to as many as 20. Hanwha Group, recognized as a global leader in LNG vessel construction, plans to focus on producing LNG carriers, naval modules, and blocks at the facility, with aspirations to expand into naval vessel production in the future.
This investment is particularly timely for the American maritime industry, which has faced challenges in recent years. In April 2025, President Trump signed an executive order titled “Restoring America’s Maritime Dominance,” aimed at revitalizing domestic shipbuilding capabilities across both commercial and military sectors. The initiative seeks to address the stark reality that U.S. shipbuilders currently account for only a small fraction of the global ship production market, in stark contrast to China’s commanding 74% share.
In July, South Korea launched the “Make America Shipbuilding Great Again” initiative, a partnership worth approximately $150 billion that includes the construction of new shipyards in the U.S., training for shipbuilding personnel, and maintenance for the U.S. Navy’s fleet. Hanwha Philly Shipyard has already built around 50% of all large ocean-going U.S. Jones Act commercial ships since 2000, underscoring its critical role in the industry.
The announcement coincided with the christening of the U.S. Maritime Administration’s third National Security Multi-mission Vessel, T/S State of Maine, at the Philadelphia facility. The ceremony was attended by South Korean President Lee Jae Myung and senior U.S. officials, including Pennsylvania Governor Josh Shapiro. This event followed summit talks between President Lee and U.S. President Donald Trump, emphasizing the strategic importance of the maritime partnership between the two nations.
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“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,” stated Hanwha Vice Chairman Dong Kwan Kim. He expressed optimism about the future, asserting that Hanwha is committed to being a key partner in shaping the next chapter of American shipbuilding.
U.S. Senator Dave McCormick also highlighted the significance of this investment, stating, “This investment is a gamechanger for the city, the commonwealth, our workers, and the country.” Hanwha’s acquisition of Philly Shipyard last year for $100 million established it as a landmark hub for American shipbuilding, marking the first time a Korean shipbuilder has set up operations in the United States. The company is now focused on modernizing the shipyard’s infrastructure with advanced technologies, including automation and smart yard systems, to enhance efficiency and productivity.
