Hanwha secures first US Navy shipbuilding contract in Philadelphia
Hanwha Defense USA has been selected by TOTE Services to construct a Medium Landing Ship (LSM) for the US Navy and Marine Corps at Hanwha Philly Shipyard, marking the company’s first naval shipbuilding contract in the United States.
The agreement is valued at US$269 million and covers the construction of one vessel, with options for three additional ships. Construction is expected to begin during the fourth quarter of 2027, while the first vessel under the wider LSM programme is scheduled for delivery in 2030.
The award was made through TOTE Services’ Vessel Construction Manager (VCM) programme, following a competitive procurement process launched in July 2026. Hanwha Defense USA was the first shipbuilder selected under the arrangement, based on its proposed pricing and acceptance of the contractual terms.
The selection represents an expansion of Hanwha’s US shipbuilding activities beyond commercial and government support vessels into naval construction.
Philadelphia shipyard prepares for naval construction
Hanwha acquired Philly Shipyard in 2024 and has since invested in workforce development, technology and preparations for additional government shipbuilding programmes.
The facility has previously worked with TOTE Services under the VCM model, constructing National Security Multi-Mission Vessels for the US Maritime Administration. Four vessels have already been delivered under that programme, providing an established basis for cooperation between the companies.
Michael Coulter, President and Chief Executive Officer of Hanwha Defense USA, said the company intends to build on these capabilities as it prepares for the naval contract.
Hanwha Defense USA personnel have been working in Philadelphia during 2026 to prepare the shipyard for naval construction activities, according to the company.
Contract forms part of wider naval programme
The LSM programme is intended to provide the US Navy and Marine Corps with a new fleet of medium landing ships.
TOTE Services holds a US$2.2 billion Vessel Construction Manager contract supporting the programme, which has an overall planned requirement of 35 vessels. The initial VCM contract covers up to eight new ships.
The company is also continuing contractual discussions with Bollinger Shipyards and Fincantieri Marinette Marine, which have been identified for roles in the initial shipbuilding programme.
Jeff Dixon, President of TOTE Services, said the selection of Hanwha demonstrated the procurement approach’s ability to move from competitive tendering to contractual arrangements while securing construction positions.
The US$269 million award covers only the first vessel assigned to Hanwha Defense USA. The three additional ships remain subject to contract options, and no separate values or exercise dates have been announced.
The agreement represents a further step in Hanwha’s expansion within the US shipbuilding market, with the Philadelphia facility preparing to undertake its first naval construction project under the new contract.
