Hanwha spends $350m upgrading Philly Shipyard to prepare for production of combat vessels

"Our goal is to increase orders from the US Department of Defense," Alex Wong, the Hanwha Group’s Global Chief Strategy Officer, told the newspaper. "The next step is to have commercial and naval shipyards operating side by side."

On September 22, the Philadelphia Authority for Industrial Development authorised a master lease giving the shipyard approximately 47.5 acres (19.2 hectares) across six additional Navy Yard properties. The authority said the yard had nearly 2,000 full-time employees and intended to add up to 5,000.

A dispute over financing under South Korea's US$150 billion US shipbuilding initiative has delayed parts of the Philadelphia expansion. In August 2025, Hanwha announced a US$5 billion infrastructure programme for the yard aimed at raising annual output from fewer than two vessels to as many as 20.

Hanwha Systems and Hanwha Ocean completed the US$100 million acquisition of Philly Shipyard on December 19, 2024. The group is also negotiating to acquire Austal USA.