Hanwha Systems and Hanwha Ocean have finalized their $100 million acquisition of Philly Shipyard, marking the official start of Hanwha’s U.S. shipbuilding operations under the new name Hanwha Philly Shipyard. The Philadelphia shipbuilder was previoulsy a subsidiary of the Norwegian industrial investment group Aker ASA.
The deal, which received approval from the Committee on Foreign Investment in the United States (CFIUS) in September 2024, positions South Korea's Hanwha to expand its presence in U.S. commercial and government shipbuilding markets.
David Kim, formerly the executive vice president for Hanwha Defense USA, has been named CEO of Hanwha Philly Shipyard. A company press release noted Kim played a key role in planning the acquisition and will now oversee the shipyard’s integration into Hanwha’s global operations. “Hanwha Philly Shipyard begins an exciting new chapter today,” Kim said. “We plan to grow and build on a long tradition of success by expanding production using advanced technologies and supporting the national revitalization of U.S. shipyards.”
The statement highlighted Philly Shipyard's role in U.S. shipbuilding, delivering approximately 50% of all large, oceangoing Jones Act commercial ships since 2000. Hanwha noted the acquisition aims to leverage Philly Shipyard’s track record while bringing in advanced technology and investment to expand capabilities.
Philly Shipyard is one of the few remaining U.S. shipyards capable of constructing oceangoing vessels that meet Jones Act requirements. In recent years, the yard has expanded its scope, taking on government ship repair work and, most notably, building five National Security Multi-Mission Vessels (NSMVs) for the U.S. Maritime Administration (MARAD). The shipyard’s current commercial projects include a subsea rock installation vessel (SRIV) for Great Lakes Dredge & Dock Corp. and three 3,600 TEU containerships for Matson, Inc.
This acquisition comes as U.S. Navy Secretary Carlos Del Toro seeks international partnerships, particularly with South Korean companies, to help revitalize U.S. commercial and naval shipbuilding capabilities in light of China’s growing dominance in the global shipbuilding sector.
Hanwha Group, South Korea’s seventh-largest conglomerate and a Fortune Global 500 company, is making strategic moves to increase its influence in the shipbuilding industry. Its subsidiary, Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering, or DSME), is one of South Korea's “big three" shipbuilders. Recently, Hanwha attempted to acquire the Australian shipbuilding firm Austal, although the bid was unsuccessful.
