Hanwha Wins First US Navy Ship Contract at Philly Shipyard

Hanwha is extending its US shipbuilding business beyond commercial vessels. Hanwha Defense USA said on November 1 that it signed a contract on October 29 (US time) with Tote Services to build one Landing Ship Medium (LSM) for the US Navy. The deal is worth about $269 million, roughly 357.5 billion won, and Hanwha Philly Shipyard will do the actual construction.

According to Hanwha, it is the first US Navy ship-building project the company has secured since it acquired Philly Shipyard in December 2024. The company plans to use it to expand its naval business in the United States and prepare for follow-on orders.

How the programme works

The project follows the Vessel Construction Manager (VCM) model, in which the Navy hands contracting and management to a specialist firm. Tote Services manages the programme on the Navy's behalf while selected yards build the ships. Tote Services was named VCM in July and signed a $2.2 billion contract.

The LSM carries Marine Corps personnel, equipment and supplies to shore and supports distributed operations in contested littoral areas such as the Indo-Pacific. The ship is 100 metres long and 16 metres wide, with a light displacement of about 2,687 tonnes and a range of roughly 7,400 km.

To speed up delivery, the Navy is using the existing LST-100 design from the Netherlands' Damen and plans to build at several yards at once. The overall target is 35 vessels. Bidders were assessed through a competitive process on safety, quality and on-time delivery record.

Track record and next steps

Philly Shipyard previously worked with Tote Services on the US Maritime Administration's National Security Multi-Mission Vessel (NSMV) programme, building and delivering four ships. Hanwha Defense USA has had staff in Philadelphia since early this year to prepare the yard for Navy work.

The yard's naval involvement has grown this year. In March it joined concept design for the Next Generation Logistics Ship with Hanwha Defense USA, and in July it was chosen to build a Missile Range Instrumentation Vessel linked to the US Golden Dome missile defence system.

Hanwha says it will keep investing in workforce training and facilities for future orders. For now, however, the contract covers just one of the 35 planned ships.