Hanwha Group wins first U.S. Navy contract to build a medium landing ship, worth about 360 billion won

[Financial News] Hanwha Defense USA, Inc., which handles Hanwha Group’s defense business in the United States, has won its first contract to build medium landing ships (LSMs) for the U.S. Navy. This is the first time Hanwha Group has won a new-build contract for a U.S. Navy vessel since acquiring Hanwha Philly Shipyard in 2024. The deal is seen as a foothold for Hanwha Group’s full-fledged entry into the U.S. warship construction market.
On the 30th (local time), Hanwha Defense USA, Inc., the U.S. subsidiary of Hanwha Aerospace, won a contract to build medium landing ships for the U.S. Navy and Marine Corps. The contract is valued at $269 million (about 360 billion won). Hanwha will build one medium landing ship at Hanwha Philly Shipyard in Philadelphia, Commonwealth of Pennsylvania, which Hanwha acquired in 2024. The contract also includes an option to build three additional medium landing ships in the future.
The contract was awarded through U.S. ship management company TOTE Services. For the program, the U.S. Navy adopted a vessel construction manager (VCM) model, in which it entrusts a specialist company with selecting the shipyard and managing construction instead of contracting directly with individual shipyards.
TOTE Services selected Hanwha Defense USA, Inc. as the shipbuilder through a competitive bidding process. It said it had secured contract terms that would allow construction of the vessel to begin in the fourth quarter of 2027. Last July, TOTE Services won a $2.2 billion VCM contract for medium landing ships from the U.S. Navy.
TOTE Services will therefore manage the construction of up to eight medium landing ships. U.S. shipbuilder Bollinger Shipyards has signed a contract to build one vessel, while Fincantieri Marinette Marine won a contract to procure long-lead materials needed for four vessels.
Michael Coulter, CEO of Hanwha Defense USA, Inc., said the company had made substantial investments in its workforce and technology for building ships for the U.S. Navy and the federal government since acquiring Hanwha Philly Shipyard. “We will do our utmost to deliver the vessels on schedule and within budget,” he said.
Hanwha Philly Shipyard previously built and delivered four National Security Multi-Mission Vessels (NSMVs) for the U.S. government in partnership with TOTE Services. Last July, it also won a contract to build the U.S. Missile Defense Agency’s “Maritime Missile Test Instrumentation Vessel” (MRIV).
The contract was awarded as South Korea and the United States pursue the revitalization of the U.S. shipbuilding industry and the expansion of naval shipbuilding capabilities through the MASGA (Make American Shipbuilding Great Again) project.
The two countries have agreed to allocate $150 billion of South Korea’s $350 billion investment in the United States to shipbuilding cooperation.
Hanwha has been strengthening its capacity to build commercial vessels and warships in the United States by expanding investment in Hanwha Philly Shipyard’s facilities and workforce. Hanwha Defense USA, Inc. previously announced plans to acquire the 60% stake in Hanwha Philly Shipyard held by Hanwha Systems through a joint venture it would lead.

[email protected] Kang Gu-gwi Reporter