U.S. and South Korea seal $150 billion deal for joint shipbuilding projects before August deadline approaches
Hanwha Philly Shipyard at the Heart of South Korea's $350 Billion Investment in U.S.
Following the conclusion of the U.S. tariff deal, South Korea has pledged a significant investment in the American economy. At the centre of this ambitious plan is Hanwha Philly Shipyard, a key player in the revitalisation of the U.S. shipbuilding industry.
The South Korean conglomerate Hanwha Group acquired Philly Shipyard in 2024, and since then, the company has been actively expanding its U.S. shipbuilding capacity as part of this broader cooperation. This move is expected to support lowered tariffs on Korean exports by demonstrating a commitment to U.S. economic interests and job creation.
Hanwha's investment of approximately $100 million last year was aimed at normalising Philly Shipyard through productivity improvements, technical training, and facility expansion. The goal is to increase ship production from 1-1.5 vessels annually to over 10 vessels per year within a decade.
The acquisition of Philly Shipyard by Hanwha is viewed as a landmark case of a Korean shipbuilder establishing a strong physical presence in the U.S. to support commercial vessel construction. Under the new Korea-U.S. tariff deal, South Korea has pledged a $150 billion fund to revive U.S. shipbuilding, and Hanwha is expected to be a key player by expanding Philly Shipyard and potentially acquiring additional U.S.-based shipyards, aligning with the U.S. administration’s job creation goals.
Hanwha has already secured contracts related to Maintenance, Repair, and Overhaul (MRO) for U.S. Navy ships and is poised to expand into LNG ship production and other sectors in the U.S. The presence and active expansion of Hanwha Philly Shipyard were pivotal in South Korea's trade negotiations, helping to reduce the planned tariffs from 25% to 15% by signalling real investment and economic engagement in the U.S.
In summary, Hanwha Philly Shipyard is the physical and operational anchor for South Korea’s ambitious shipbuilding investment in the U.S., symbolizing both a strategic industrial partnership and a lever for tariff negotiations. This reflects Korea's broader "Make American Shipbuilding Great Again" initiative under the new trade framework with the United States.
- The $100 million investment by Hanwha in Philly Shipyard last year aims to increase ship production, aligning with South Korea's broader commitment to U.S. job creation.
- The expansion of Philly Shipyard, along with potential acquisitions of other U.S.-based shipyards by Hanwha, is expected to support a $150 billion fund for reviving the U.S. shipbuilding industry, as pledged by South Korea.
- Hanwha Philly Shipyard's growth and presence in the U.S. have played a crucial role in negotiating lower tariffs, with the planned tariffs decreasing from 25% to 15% due to Hanwha's real investment and economic engagement in the U.S.
- Hanwha is not only focusing on ship production but also venturing into sectors such as LNG ship production and Maintenance, Repair, and Overhaul (MRO) for U.S. Navy ships, further strengthening its position in the American economy and technology-driven industries.
