Posted on November 4, 2026
South Korea’s Hanwha Group has secured a contract to build a medium landing ship for the U.S. Navy, marking the start of naval vessel construction at its Philadelphia shipyard.
The contract is Hanwha’s first U.S. Navy shipbuilding award since acquiring Philly Shipyard in December 2024.
The company is expanding its experience in commercial and government vessel construction into naval shipbuilding while establishing a foundation for additional orders.
According to Hanwha Group on Sunday, Hanwha Defense USA signed a contract Thursday with TOTE Services, a U.S. Navy vessel construction management contractor, to build one medium landing ship.
The contract is valued at approximately $269 million, or about 357.5 billion won, with construction to take place at Hanwha Philly Shipyard.
TOTE Services manages shipbuilding contracts and construction on behalf of the U.S. Navy under its vessel construction management arrangement.
The award demonstrates how Hanwha’s investments in personnel and technology since acquiring the shipyard have contributed to its entry into U.S. naval construction.
Hanwha Defense USA began assigning personnel to Philadelphia earlier this year to support the shipyard’s preparations for naval construction.
Hanwha Philly Shipyard previously worked with TOTE Services to build and deliver four National Security Multi-Mission Vessels under a U.S. Maritime Administration program.
TOTE Services selected the shipbuilder through a competitive process that evaluated factors including safety, quality and delivery performance.
The medium landing ship is designed to transport and deploy Marine Corps personnel, equipment and supplies during expeditionary operations in coastal areas.
The vessel measures approximately 100 meters long and 16 meters wide, has a light displacement of about 2,687 tons and a range of roughly 7,400 kilometers, or 4,600 miles.
The U.S. Navy plans to use the Dutch shipbuilder Damen’s LST-100 design and construct vessels simultaneously at multiple shipyards to accelerate initial deployment.
Hanwha is also expanding its participation in other U.S. naval programs.
In March, Hanwha Philly Shipyard and Hanwha Defense USA participated in conceptual design work for the Navy’s next-generation logistics ship.
In July, the shipyard was selected for a maritime missile range instrumentation vessel construction project associated with the U.S. Golden Dome missile defense system.
The Navy plans to acquire a total of 35 medium landing ships.
Hanwha aims to demonstrate its ability to meet quality standards and delivery schedules through the initial contract before seeking follow-on orders.
The company also plans to continue workforce development and facility investment to prepare for possible additional construction.
U.S. Sen. Dave McCormick said Pennsylvania was helping lead the rebuilding of American shipbuilding, bringing jobs, manufacturing and new opportunities back to the state.
He said Hanwha’s continued commitment to investing in Philadelphia demonstrated what could be achieved through investment in American workers and industry.
Michael Coulter, president and chief executive officer of Hanwha Defense USA, said the company had invested heavily in personnel and technology since acquiring Philly Shipyard in 2024 to establish a shipbuilding base for the U.S. Navy and other federal customers.
Coulter said Hanwha would work with TOTE Services to deliver the vessel on schedule and within budget.
