A major South Korean industrial conglomerate has been awarded its first U.S. Navy contract by a Philadelphia shipyard owned by the company. The contract is for vessels that resupply Navy ships at sea as part of the Next Generation Logistics Ship (NGLS) program. This marks the first time Hanwha Defense USA has received a Navy contract since acquiring the Philly Shipyard in 2024.
Hanwha Defense USA and its subsidiary, Hanwha Philly Shipyard, will serve as a design subcontractor to Norwegian shipbuilder Vard Group's U.S. division on the NGLS program. The company has spent over $200 million on workforce and capacity upgrades, with plans for a total investment of $5 billion announced in 2025.
The acquisition of the Philly Shipyard was a significant move by Hanwha, allowing it to expand its presence in the U.S. shipbuilding market. The company's order book has grown significantly since then, including an order for 10 Jones Act oil and chemical tankers from the Philadelphia yard.
In addition to the NGLS contract, Hanwha Shipping's U.S. unit has ordered two liquefied natural gas carriers from the shipyard, which will be the first to be constructed in the U.S. in almost 50 years. This demonstrates the growing demand for LNG carriers in the U.S.
Seoul earlier pledged a significant investment of $150 billion in the U.S. maritime sector, highlighting the importance of the industry to the country's economic growth.
The value of the Hanwha contract was not disclosed, but the Vard contract is worth $4.5 million. The partnership between Hanwha and Vard will focus on market survey, concept design, and refinement for the new NGLS light replenishment oiler.
The platform will utilize available, proven technologies instead of designing from scratch, reducing development time and costs. This approach also allows for greater flexibility in terms of vessel design and configuration.
The Hanwha contract extends to manufacturability support, commercial construction practices, and evaluation of production costs. This demonstrates the company's commitment to delivering high-quality ships that meet the Navy's requirements.
Hanwha Defense USA President Tom Anderson stated that the award represents an important step in the company's ability to leverage its world-class shipbuilding expertise in building the ships the Navy needs to support servicemembers deployed in contested maritime domains.
The award marks a significant milestone for Hanwha Defense USA and its Philadelphia shipyard, demonstrating the company's capabilities in supporting the U.S. Navy.
