Hanwha Philly Shipyard Wins $269M US Navy Landing Ship Order

In the U.S. Navy and Marine Corps Medium Landing Ship (LSM) program, ship construction manager TOTE Services has selected Hanwha Defense USA as the first LSM shipbuilder under its Vessel Construction Manager (VCM) contract, Naval News reported on October 30. The contract is worth $269 million for one ship and carries options for three more. Hanwha Philly Shipyard in Philadelphia is scheduled to begin construction in the fourth quarter of 2027 and deliver the first ship in 2030.

According to Naval News, TOTE Services selected Hanwha Defense USA, and construction will be carried out by Hanwha Philly Shipyard. The price is $269 million for one ship, with options for three more. Construction is expected to start in the fourth quarter of 2027, with delivery of the first ship expected in 2030. The contract is the first U.S. Navy newbuild order won by Philly Shipyard since Hanwha Group acquired it in 2024.

Jeff Dixon [check spelling], president of TOTE Services, said the selection shows how quickly the VCM approach can move from a request for proposals to a contract. Michael Coulter, president and CEO of Hanwha Defense USA, said PAE Maritime, the Navy organization responsible for portfolio acquisition, has made clear that the program is a priority for the Navy and Marine Corps.

The Vessel Construction Manager (VCM) approach

TOTE Services announced on July 13 that PAE Maritime had selected it as the vessel construction manager for the LSM program. The contract is worth $2.2 billion and covers up to eight new LSMs, while the Navy and Marine Corps plan a total of 35 LSMs. As prime contractor, TOTE directly awards and manages the shipyard subcontracts.

TOTE first applied this approach in the National Security Multi-Mission Vessel (NSMV) program. As of TOTE’s July announcement, three of the five NSMVs had been delivered, and the remaining two were scheduled for delivery within about 12 months. Naval News wrote that Hanwha Philly Shipyard has already delivered four NSMVs under this approach.

Hanwha’s next steps and remaining variables

Hanwha Defense USA plans to acquire the 60% stake in Philly Shipyard held by Hanwha Systems. According to Naval News, the LSM design is derived from Damen’s LST 100 platform, and the program’s first contract went to Fincantieri Marinette Marine in April. Because this contract covers one ship with the other three as options, whether the options are exercised and the additional shipyard selections TOTE has signaled are the variables to watch.

The contract is a concrete case of a Korean-owned shipyard entering a U.S. Navy newbuild program. Still, the amount is $269 million for one ship, and construction starts in the fourth quarter of 2027, about a year away. It is also an indicator of how quickly Korea–U.S. shipbuilding cooperation is moving from concept to actual orders. The exercise of the three options and the results of additional shipyard selections are the next checkpoints. It should also be kept in mind that the work Hanwha has won is only part of the overall 35-ship plan.

*References: Naval News · TOTE Services LSM

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This article was translated from the Korean edition of Science Monitor with AI assistance and reviewed by our editors.