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Report: Hanwha Ocean Plans Large-Scale Expansion of Philly Shipyard

Philly Shipyard
Hanwha Ocean is developing plans to expand and modernize the operation at Philly Shipyard (Hanwha Ocean Philly Shipyard)

Published May 20, 2025 7:46 PM by The Maritime Executive


Months after having completed the acquisition of the Philly Shipyard, South Korea’s Hanwha Ocean is planning to invest more than $70 million to modernize and expand the shipbuilder’s operations to realize the opportunities as the U.S. looks to revitalize its navy and merchant marine. According to reports in the Korean media, the company detailed the plans to expand production at the Philadelphia yard during a tour with Korean stock analysts.

The Korean Economic Daily reports the company told analysts that it will increase the production capacity at the yard, which currently delivers about one ship a year, to a capability to build eight to ten ships per year. 

A team of 50 specialists is on site at the yard from Korea working with the newly installed management to assess current conditions at the yard and develop the plans for productivity improvements and modernizing the facilities. They are planning a technology transfer from the company’s Geoje Shipyard in South Korea and the implementation of new technologies such as welding robots.

Hanwha purchased the shipyard for $100 million, closing the acquisition in December 2024. Even before the deal was completed, it highlighted the opportunities to expand into additional government work, possibly as a components supplier building sections of ships with other yards for the navy or auxiliary fleet. With the SHIPS Act in Congress and the Trump White House calling for rapid growth of the U.S. fleet, the yard sees strong potential, including leveraging its expertise in LNG carriers to build the first U.S.-flagged vessels. The proposal from the U.S. Trade Representative includes a requirement for a portion of U.S. LNG exports to be conducted with U.S.-built and flagged ships. 

Philly Shipyard was started in 1997 as a government partnership with Norway’s Kvaerner Shipbuilding division at a portion of the former Philly Naval Shipyard. In the early 2000s, production began, and the yard built product tankers and containerships. It reports that it has built half of the current Jones Act vessels in the U.S. since 2000. When Hanwha Ocean acquired it, the order book consisted of the five MARAD training ships, a rock installation vessel for Great Lakes Dredge & Dock Company, and three containerships for Matson.

Hanwha Ocean reportedly told the analysts that the site had lacked investment for many years. The yard is currently only operating the Number 4 dry dock for assembly and the Number 5 dry dock as an outfitting berth. Plans call for modernizing the Number 4 dry dock and rehabilitating the Number 5 dry dock to be fully functional for additional assembly space.

The Philadelphia Inquirer newspaper reported in April that a Congressional delegation visited the shipyard. The newspaper writes that management discussed the need for additional space. Senator Chris Coons of Delaware suggested that he would explore moving the stored vessels by the U.S. Navy adjacent to the yard to provide additional space for Hanwha Ocean. The company also said it was exploring industrial space across the Delaware River in New Jersey for the possible expansion of its operations. 

Hanwha Ocean told the analysts during the tour that the goal is to increase revenues from the yard from the current level of $368 million per year to $4 billion per year by 2035. It will also look to more than double the current workforce to 3,000 employees over the next decade.