Posted on May 21, 2025
South Korean conglomerate Hanwha Group is reportedly planning a major investment for improvements at its recently acquired Philly Shipyard, with plans to produce the U.S.-built LNG carriers.
According to Korean newspaper JoongAng Ilbo, the $72 million investment will help transform the U.S. shipyard into a high-tech facility capable of producing up to 10 vessels annually by 2035. The investment will be used to upgrade the dock and implement automation systems throughout the shipbuilding process, the report said.
The investment follows Hanwha’s $100 million acquisition of the shipyard in December 2024 through its subsidiaries Hanwha Systems and Hanwha Ocean, becoming the first South Korean Korean shipbuilder to establish operations in the United States. The company’s vision includes pioneering the construction of liquefied natural gas (LNG) carriers, marking a first for any U.S. shipbuilder.
News of the investment comes on the heals of efforts by both the Trump administration and Congress to revitalize the domestic shipbuilding sector, as well as new U.S. Trade Representative requirements that would mandate LNG producers transport 1% of exports on U.S.-built ships by April 2028, increasing to 15% by 2047.
However, industry experts remain skeptical about the feasibility of the requirements given the deteriorated state of the U.S. shipbuilding industrial base and workforce.
“As the U.S. government has decided to expand its national strategic fleet to 250 vessels, government support such as subsidies will be necessary for Hanwha Group to secure profitability,” a shipbuilding industry spokesperson told JoongAng Ilbo.
