Hanwha invests $5 billion in Philly Shipyard as part of 'MASGA' push

Home > Business > Industry

Hanwha invests $5 billion in Philly Shipyard as part of 'MASGA' push

Published: 27 Aug. 2025, 17:35 Updated: 27 Aug. 2025, 18:24

LEE JAE-LIM
[email protected]

Audio report: written by reporters, read by AI

President Lee Jae-myung, at the center, applauds after signing the guestbook during his visit to Philly Shipyard in Philadelphia, Pennsylvania, on Aug. 26. To his left is Hanwha Group Vice Chairman Kim Dong-kwan. [JOINT PRESS CORPS]

Hanwha will invest $5 billion in its U.S. arm, Hanwha Philly Shipyard, to sharply expand vessel output as part of Korea's $150 billion push into the U.S. maritime and defense sector.

The $150 billion package — collectively dubbed “Make American Shipbuilding Great Again” (MASGA) in Korea — was announced as the centerpiece of a bilateral trade deal reached in July, which set tariffs on Korean exports to the United States at a lower-than-expected rate of 15 percent.

At the Korea-U.S. summit on Monday, President Lee Jae Myung emphasized the need for a “shipbuilding renaissance” that Seoul and Washington would pursue together while U.S. President Donald Trump hailed Korea’s shipbuilding expertise and called for deeper cooperation to revive America’s long declining shipbuilding industry.

Under the $5 billion program, Hanwha Philly Shipyard’s annual production will rise from 1.5 vessels to 20, supported by the addition of two docks, three quays and a new 396,696-square-meter (98-acre) block assembly facility now under review.

From left, Pennsylvania Governor Josh Shapiro, President Lee Jae Myung and Hanwha Group Vice Chairman Kim Dong-kwan take a commemorative photo at Philly Shipyard on Aug. 26. [JOINT PRESS CORPS]

“We are creating good manufacturing jobs, building the world’s most advanced ships and fostering a new skilled work force right here in America,” Hanwha Group Vice Chairman Kim Dong-kwan said in a welcoming speech at a ship-naming ceremony at the shipyard in Philadelphia, Pennsylvania, on Tuesday. “This is just the beginning. Hanwha is committed to being a partner in building the next chapter of American shipbuilding.”

The expansion is expected to boost the shipyard’s work force from the current 7,000 employees to more than 10,000. Hanwha also plans to introduce advanced technologies from its Korean operations — including automated facilities, smart yard systems and safety platforms — to build liquefied natural gas (LNG) carriers, supply naval blocks and modules and eventually move into full-scale naval ship construction.

The project will be financed through the MASGA initiative as a mix of direct investment, guarantees and loans spearheaded by Korea’s policy finance institutions.

Separately, Hanwha Shipping, the group's U.S. subsidiary, has ordered 10 medium-range oil and chemical tankers and one LNG carrier from Philly Shipyard. The first tanker is scheduled for delivery in early 2029. The LNG carrier order follows an earlier 350 billion won ($250 million) contract — the first U.S. LNG carrier deal in five decades — and comes as Washington considers revisions to Section 301 of the U.S. Trade Act and the Jones Act, which could require U.S. flagged vessels for energy exports.

Hanwha Group Vice Chairman Kim Dong-kwan participates in a ship-naming ceremony for the State of Maine at Philly Shipyard on Aug. 26. [JOINT PRESS CORPS]

The two LNG carriers will be jointly built by Hanwha Philly Shipyard and Hanwha Ocean’s Geoje, South Gyeongsang facility.

Hanwha has been moving aggressively to expand its U.S. presence through acquisitions and equity investments. The group acquired Hanwha Philly Shipyard for $100 million in December 2024, with Hanwha Ocean taking 40 percent and Hanwha Systems 60 percent. It also holds a 9.9 percent stake in Austal, an Australian defense shipbuilder with major operations in Alabama and California, and seeks to raise that stake to 19.9 percent pending approval from Australia’s Foreign Investment Review Board.

BY LEE JAE-LIM [[email protected]]