Hanwha Group, South Korea’s seventh-largest business group, has announced a $5 billion infrastructure plan for Hanwha Philly Shipyard as part of South Korea’s commitment to supporting growth of the US shipbuilding industry through a $150 billion investment fund.
The announcement was made in time for the christening of a new training vessel, the US Maritime Administration’s (MARAD) third National Security Multi-mission Vessel (NSMV).
The naming ceremony, which took place at Hanwha Philly Shipyard, was attended by South Korean President Lee Jae Myung, the First Lady, and other senior officials. Pennsylvania Governor Josh Shapiro and Senator Todd Young also joined the event.
The ceremony followed summit talks between President Lee and US President Donald Trump. Earlier, the Lee administration had pledged $150 billion in American shipbuilding investments during a trade deal between Korea and the US. Hanwha Philly Shipyard is expected to play a key role in future collaboration between the two countries.
In his welcome address, Hanwha Vice Chairman Dong Kwan Kim expressed gratitude to the leaders of both countries and emphasized the importance of joint partnership in bolstering the shipbuilding industry.
“Today’s christening ceremony is the embodiment of our two nations working side by side to reindustrialize for the sake of shared security and prosperity. We are creating good manufacturing jobs, building the world's most advanced ships, and fostering a new skilled workforce right here in America," said Kim. “This is just the beginning. Hanwha is committed to being a partner in building the next chapter of American shipbuilding.”
Hanwha acquired Philly Shipyard last year through a $100 million investment, building a landmark hub for shipbuilding in America. It is investing to modernise infrastructure and create a digitally-enabled, high-efficiency shipyard, with world-class automation and smart yard technology.
The $5 billion programme will be dedicated to the installation of two additional docks, and three quays to increase capacity. Hanwha is also reviewing the build-out of a new block assembly facility. Through this expansion, Hanwha aims to increase Philly Shipyard’s annual production volume from less than two vessels to up to 20. As a global leader in LNG vessels, Hanwha aims to produce LNG carriers, naval modules and blocks, and, in the long-term, naval vessels out of its US shipyard.
In addition to the infrastructure plan, the US subsidiary of Hanwha’s shipping arm, Hanwha Shipping, announced that it has ordered 10 medium range (MR) oil and chemical tankers from its affiliate, Hanwha Philly Shipyard, with the first tanker expected to be delivered by early 2029. The vessels will be designed to support the US Jones Act fleet renewal and other strategic initiatives. Hanwha Shipping also announced it has exercised its option to order a second liquefied natural gas (LNG) carrier from Hanwha Philly Shipyard. This follows Hanwha Shipping’s announcement last month that it signed a contract for the first US-ordered, export-market-viable LNG carrier in almost 50 years.
Hanwha Ocean CEO Hee Cheul Kim and Hanwha Global Defense CEO Michael Coulter were also present at the christening ceremony. Through joint synergy between its world-class shipbuilder Hanwha Ocean and US affiliate Hanwha Philly Shipyard, Hanwha looks to drive mutual growth across both markets, fostering job creation and the development of a robust industry ecosystem. - TradeArabia News Service
