Hanwha Philippines Shipyard Expansion Depends on MASS Agreement

[Financial News] Hanwha Group explained that the key to expanding the Hanwha Philly Shipyard in Philadelphia, USA, is the MASGA (Korea-US Shipbuilding Cooperation) project. This is because, although expansion plans have been established, they can only be implemented once funding from the Shipbuilding Cooperation Fund is secured and the U.S. government eases regulations.
Hanwha announced on the 3rd that it is proceeding with the expansion and improvement of production facilities at its Philly shipyard. However, this is taking place "within the existing site." Although Hanwha Ocean and Hanwha Systems invested $100 million (approximately 140 billion KRW) to acquire the facility in 2024, conditions for expansion have not been established in the meantime, so the company is streamlining processes within the existing site.
Last August, Hanwha announced that it would invest $5 billion (approximately 7 trillion won) in its Philly shipyard to align with the MASS project. The plan involves establishing a block production base spanning 120,000 pyeong by securing two additional docks and three quays. With this, the company plans to increase its shipbuilding capacity to 20 vessels per year.
However, Hanwha explains that the MASS project must be on track to implement the expansion plan. They state that prerequisites include the substantial inflow of funds from the Shipbuilding Cooperation Fund and the deregulation by the U.S. government necessary to secure the expansion site.
"We are establishing expansion plans, such as where to expand the docks and where to build the quays, but implementation is only possible once the MASS project, which is currently being discussed between South Korea and the U.S., proceeds," said a Hanwha official. "MASS needs to establish an agreement and persuade the U.S. Congress to meet the necessary administrative regulatory relaxations and conditions for investment."
The MAS agreement is still under discussion between South Korean and U.S. authorities, but it is gaining momentum due to the growing demand for U.S. warship construction and MRO (maintenance, repair, and overhaul).Last month, a delegation led by Richard Breckinridge, Senior Advisor for Shipbuilding at the U.S. Department of the Navy, visited Korea under the auspices of the Defense Acquisition Program Administration and toured the sites of shipbuilding companies such as Hanwha Ocean, HD Hyundai Heavy Industries, and SK Ocean Plant.
Regarding this, a ruling party official stated, "There have been several unannounced visits by the U.S. Navy to Korea in the past," adding, "MAS is assessing the capabilities of Korean shipbuilders to commission warship construction or MRO for the project."

[email protected] Kim Yun-ho Reporter