Hanwha Secures First US Navy Project Since Philly Shipyard Acquisition, Establishing a Key Footprint
Hanwha Group has been awarded its first US Navy contract as a subcontractor on a next-generation logistics ship program, signaling a significant advancement in the company’s strategy to penetrate the American defense market.
Hanwha’s US-based subsidiaries, Hanwha Defense USA and Hanwha Philly Shipyard, will collaborate with Vard Marine US, the US subsidiary of shipbuilder Vard Group, to provide support in market research, concept design, and refinement for the Next Generation Logistics Ship (NGLS) program.
The NGLS, also referred to as the light replenishment oiler, is a new class of mid-sized auxiliary vessel designed for refueling, rearming, and resupplying combat ships.
Hanwha will contribute to manufacturing assessments, commercial construction practices, and production cost analysis, according to a company statement released on Tuesday. The contract also includes options for further functional design planning and specialized studies.
The concept design phase is the preliminary stage before construction begins, where contractors evaluate the type of vessel that can be built, its capabilities, and its associated costs.
The US Navy is utilizing a competitive approach, pitting two teams against each other during the design stage: one led by General Dynamics NASSCO, a leading US defense shipbuilder, and the other led by Vard Marine in partnership with Hanwha.
Following the concept phase, the project will move into detailed design stages, after which a separate construction contract will be awarded. The US Navy plans to procure a total of 13 vessels under the NGLS program.
While the current concept design phase is in its early stages and does not guarantee involvement in the construction phase, it represents a notable achievement for Hanwha, as it grants the company access to highly sensitive US Navy warship design activities.
This contract marks the first US Navy project secured by Hanwha Defense USA since its inception and the first since Hanwha’s acquisition of Philly Shipyard in December 2024. The group invested $100 million to acquire Philly Shipyard in Philadelphia and has since invested over $200 million to improve its workforce, capabilities, and production capacity.
“Hanwha is proud to partner with Vard in the design and integration of the Next Generation Logistics Ship for the US Navy,” stated Tom Anderson, president of shipbuilding at Hanwha Defense USA. “This award is an important step in our ability to leverage our world-class shipbuilding expertise in building the ships the Navy needs to support our service members deployed in contested maritime domains.”
Experts suggest that this deal could pave the way for Hanwha to expand its shipbuilding and defense presence in the US, the world’s largest defense market, where demand for new naval vessels is projected to remain robust.
A January report from the Congressional Research Service indicates that the US Navy is expected to allocate an average of $35.8 billion annually to new ship construction over the next three decades.
This agreement coincides with US President Donald Trump’s initiative to revitalize the American shipbuilding industry, with Hanwha Group emerging as a significant partner.
In December, Trump recognized Hanwha as a “good company” and stated that the company would collaborate with the US Navy on the construction of new frigates, a modern class of combat vessels that are smaller and more agile, designed to complement larger, multi-mission warships.
The project also represents the first US naval project secured by a South Korean company since the launch of the bilateral shipbuilding cooperation initiative known as “Make American Shipbuilding Great Again,” or MASGA, last year.
With this agreement in place, MASGA, which includes South Korea’s $150 billion investment commitment to the US shipbuilding sector, seems to be gaining significant traction, with industry analysts anticipating further shipbuilding announcements in the coming months.
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