Hanwha to boost capacity at Philly Shipyard with $5 billion expansion

Hanwha Group, parent of Korea’s major shipbuilder Hanwha Ocean, pledged $5 billion Tuesday to expand capacity at Philly Shipyard in the United States. The investment is part of Seoul’s broader $150 billion shipbuilding initiative.

Hanwha Group Vice Chairman Kim Dong-kwan delivers a welcome address at a ship-naming ceremony held at the Hanwha Philly Shipyard in Philadelphia on Tuesday, attended by President Lee Jae Myung, Pennsylvania Gov. Josh Shapiro and other officials. [HANWHA]

Hanwha Group, parent of Korea’s major shipbuilder Hanwha Ocean, pledged $5 billion Tuesday to expand capacity at Philly Shipyard in the United States. The investment is part of Seoul’s broader $150 billion shipbuilding initiative aimed at strengthening ties with the U.S. maritime sector.

The plan will increase the yard’s annual output from 1.5 to 20 vessels by adding two docks, three quays and a new 396,696-square-meter (98-acre) block assembly facility — currently under review.

Separately, Hanwha Shipping, the group’s U.S. subsidiary, placed orders for 10 medium-range oil and chemical tankers and one liquefied natural gas (LNG) carrier with the yard. The first tanker is slated for delivery in early 2029.

The orders come as Washington considers revisions to Section 301 of the U.S. Trade Act and the Jones Act that would mandate U.S.-flagged vessels for energy exports. The LNG carrier contract follows Hanwha Shipping’s earlier 350 billion won ($250 million) order, marking the first U.S. LNG carrier construction deal in five decades.

Hanwha acquired Philly Shipyard for $100 million last year, with Hanwha Ocean holding a 40 percent stake and Hanwha Systems 60 percent, securing a local foothold for its entry into the U.S. shipbuilding market.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]