Hanwha invests hundreds of millions to upgrade Philly Shipyard

South Korean conglomerate Hanwha is investing heavily in the Philadelphia-based Philly Shipyard to transform its operations. Since acquiring the yard in December 2024 for $100 million, Hanwha has spent approximately $350 million on facility improvements. The company has also approved an additional $400 million in investment through the end of 2027.

The strategic goal is to transition the yard from building auxiliary vessels to constructing combat ships by 2028, which includes obtaining necessary certifications. Planned upgrades include a new training center, virtual reality painting instruction, advanced welding tools, and collaborative robots. Hanwha aims to increase orders from the U.S. Department of Defense and eventually operate commercial and naval shipyards side by side.

Despite the investment, the expansion faces several challenges, including high production costs, supplier and subcontractor shortages, labor recruitment difficulties, and limited physical space for new facilities. Additionally, uncertainty regarding long-term Pentagon vessel orders and financing disputes related to South Korea’s $150 billion shipbuilding initiative have impacted progress. The shipyard currently employs nearly 2,000 people, with plans to expand the workforce to up to 5,000.