Hanwha Eyes Significant Investment in Philadelphia Shipyard, Targets LNG Carrier Development

South korea’s Hanwha Group is gearing up for a meaningful investment in Philly Shipyard,aiming to enhance its capabilities for building LNG carriers right here in the U.S. A report from JoongAng Ilbo reveals that Hanwha plans to inject $72 million into the shipyard, transforming it into a cutting-edge facility with the potential to produce up to 10 vessels each year by 2035. This cash infusion will focus on modernizing the dock and integrating automation throughout the shipbuilding process.

This move follows Hanwha’s acquisition of Philly Shipyard for $100 million back in December 2024 through its subsidiaries, Hanwha Systems and Hanwha Ocean. With this purchase, they became pioneers as the first South Korean shipbuilder to set up shop in America. their ambitious goal? To lead the way in constructing liquefied natural gas (LNG) carriers—a groundbreaking venture for any U.S.-based shipbuilder.

The timing of this investment aligns with recent initiatives from both Congress and previous administrations aimed at revitalizing American shipbuilding. New regulations from U.S. Trade Representatives are also on deck, requiring LNG producers to transport a minimum of 1% of their exports using ships built domestically by April 2028, ramping up to 15% by 2047.

yet not everyone is convinced that these requirements are realistic given the current state of America’s shipbuilding industry and workforce challenges. An industry expert shared concerns with JoongAng Ilbo: “For Hanwha Group to achieve profitability while contributing to an expanded national strategic fleet—targeting 250 vessels—government support like subsidies will be crucial.”

considering these developments, it’s clear that while there’s optimism about revitalizing domestic production capabilities, significant hurdles remain ahead for both foreign investors like Hanwha and local stakeholders alike.