Federal News
Hanwha Modernizes Philly Shipyard for Naval Production
March 24, 2026
Hanwha Group is undertaking a significant modernization of the Philly Shipyard in Philadelphia, Pennsylvania, aiming to increase U.S. ship production capacity from 1.5 to 20 ships annually. This modernization includes installing advanced robotics and automation equipment and expanding the facility footprint. Hanwha executives have also indicated readiness to domestically build nuclear submarines at the site, leveraging their South Korean expertise to support U.S. naval capabilities. This development signals a major expansion in U.S. shipbuilding infrastructure with potential implications for defense procurement and industrial base growth.
- Why this matters: The modernization represents a substantial increase in domestic shipbuilding capacity, which could influence future naval contracts and supply chain strategies.
- Procurement professionals should anticipate increased demand for advanced manufacturing technologies, skilled labor, and facility upgrades related to naval ship production.
- Contractors and suppliers specializing in robotics, automation, and naval systems may find new opportunities supporting Hanwha's expanded operations.
- This initiative aligns with broader U.S. efforts to strengthen the naval industrial base and reduce reliance on foreign shipbuilding for critical defense assets.
The facility is a dinosaur. We plan to install robots and automation equipment and recruit thousands of workers over the next two years to make ships at the site.
— David Kim, CEO of Hanwha Philly Shipyard
We have told the U.S. government that if they so wish, we will build submarines for them in the United States, and in Philadelphia, just like we do in Korea.
— Michael Coulter, CEO of Hanwha Defense USA
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Hanwha Group
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- Hanwha Plans Philly Shipyard Modernization · ExecutiveBiz · Mar 24