Hanwha Group has finalized the acquisition of Philly Shipyard in Philadelphia, marking the first time a South Korean company has taken ownership of a United States shipyard. The move is expected to pave the way for S. Korea’s shipbuilding industry to expand its presence in the U.S., in line with a direct request for collaboration from U.S. President-elect Donald Trump.
On Nov. 7, Trump highlighted S. Korea’s global expertise in building warships and other vessels, emphasizing the need for close cooperation not only in ship exports but also in repair and maintenance.
Hanwha announced on Dec. 20 that it had completed all necessary procedures to acquire the shipyard, wrapping up the deal six months after signing a purchase agreement with its Norwegian parent company, Aker ASA, in June. The acquisition, valued at $100 million, included participation from Hanwha Ocean, its shipbuilding subsidiary, and Hanwha Systems, which specializes in defense and aerospace products.
The deal received swift approvals from the Committee on Foreign Investment in the United States (CFIUS) and the Directorate of Defense Trade Controls (DDTC), reflecting strong U.S. government support for revitalizing its shipbuilding industry. Hanwha Ocean plans to leverage Philly Shipyard’s production capacity and market experience to strengthen its position in the North American shipbuilding market. The company aims to boost efficiency by incorporating its cutting-edge eco-friendly shipbuilding technologies and automated production systems.
It also aims to expand its presence in the premium ship market. Meanwhile, Hanwha Systems intends to support the development of next-generation vessels equipped with autonomous navigation technologies. The company plans to integrate advanced systems, such as unified control devices and automated ship management solutions, to enhance the shipyard’s technological competitiveness.
Philly Shipyard, established in 1997 on the site of the former Philadelphia Naval Shipyard, specializes in building coastal cargo vessels. It has a solid track record, supplying about 50% of large merchant ships subject to the Jones Act, including petroleum product carriers and container ships.
The Jones Act requires vessels operating between U.S. ports to be constructed domestically. With its capabilities, the shipyard is set to become a vital hub for the Navy’s Maintenance, Repair, and Overhaul (MRO) services, addressing chronic delays in ship production and repairs caused by a lack of shipbuilding facilities.