South Korea’s Hanwha Ocean will invest at least $70 million to expand production at its newly acquired Philadelphia shipyard, targeting an ambitious tenfold increase in output as the facility becomes central to bilateral trade relations.
The investment comes months after Hanwha completed its $100 million acquisition of Philly Shipyard in December 2024. The company aims to boost the yard’s current capacity from roughly one ship annually to eight to ten vessels by 2035, according to Korean media reports citing analyst briefings.
The expansion plan coincides with South Korea’s recent trade agreement with the United States, which included a $150 billion shipbuilding cooperation fund as part of a broader $350 billion investment package. The deal helped Seoul secure a 15% tariff rate instead of the threatened 25% duties.
A team of 50 Korean specialists is currently on-site assessing the yard’s condition and developing modernization plans. The facility has operated with limited capacity, using only two of its dry docks for assembly and outfitting.
While Hanwha touts the project’s potential, the Philadelphia yard faces significant challenges. Company officials acknowledged the site “had lacked investment for many years”, and the ambitious production targets represent a dramatic departure from the yard’s recent performance.
The success of this venture will largely depend on Hanwha’s ability to modernize aging infrastructure while navigating complex U.S. regulatory requirements for naval and commercial shipbuilding contracts.
