Hanwha Wins $269M US Navy Landing Ship Contract
Hanwha Defense USA has secured a $269 million US Navy shipbuilding contract to construct a medium landing ship (LSM) for the US Navy and Marine Corps at Philly Shipyard in Pennsylvania. The deal marks a significant milestone in the South Korean defense group’s expansion into the American naval shipbuilding market and strengthens its position in the US defense industry.
The US subsidiary of Hanwha Aerospace was selected by maritime services company Tote Services to build one landing ship, with options for three additional vessels. The contract represents Hanwha Group’s first order to build a new US Navy vessel since acquiring Philly Shipyard in 2024, highlighting the growing role of international investment in US naval shipbuilding.
Construction Scheduled to Begin in 2027
According to Tote Services, construction of the first medium landing ship is scheduled to begin in the fourth quarter of 2027. The vessel is expected to be delivered in 2030.
The contract was awarded under a $2.2 billion vessel construction manager program, for which the US Navy selected Tote Services in July. Under this arrangement, the Navy delegates shipyard selection and construction oversight to a specialized company rather than contracting directly with individual shipbuilders.
Tote Services is responsible for managing the construction of up to eight landing ships under its initial contract. The company selected Hanwha Defense USA through a competitive bidding process launched in July, citing competitive pricing and its acceptance of the contract terms.
Hanwha Expands Its US Naval Shipbuilding Capabilities
Hanwha has invested in its workforce and technology at Philly Shipyard since acquiring the facility in 2024, preparing it to build vessels for the US Navy and other federal customers.
“Since acquiring Philly Shipyard in 2024, Hanwha has made significant investments in its workforce and technology to pave the way to build ships for the US Navy and other federal customers,” said Michael Coulter, president and CEO of Hanwha Defense USA.
The contract comes as South Korea and the United States pursue closer cooperation in shipbuilding through the “Make America Shipbuilding Great Again” initiative, which aims to revitalize the American shipbuilding industry and strengthen the country’s naval construction capabilities.
Hanwha Defense USA is also planning to acquire the 60 percent stake in Philly Shipyard held by Hanwha Systems. The proposed move is intended to consolidate Hanwha Defense USA’s role in the group’s US naval shipbuilding business.
Implications for US Naval Shipbuilding
The contract strengthens Hanwha’s foothold in the US naval shipbuilding sector and demonstrates how international defense companies can contribute to American shipbuilding capacity through investment, workforce development and industrial cooperation.
For the US Navy, the vessel construction manager model provides an alternative approach to overseeing shipbuilding projects by assigning shipyard selection and construction management to a specialized company. Hanwha’s selection also highlights the importance of competitive pricing and contract terms in securing naval construction work.
Read:HD Hyundai and Hanwha Ocean Showcase Advanced Maritime Technology at Gastech 2026
The agreement could provide Hanwha with a stronger platform for pursuing additional US government shipbuilding opportunities. However, the immediate contract covers one medium landing ship, with options for three more vessels; any further orders will depend on the exercise of those options and subsequent contractual decisions.
