PHILADELPHIA — South Korean industrial conglomerate Hanwha is preparing to double its physical footprint at the Philadelphia Navy Yard this year, accelerating a massive investment in American shipbuilding and defense manufacturing.

The expansion builds on the $100 million acquisition that brought the historic Philly Shipyard under Hanwha's control in December 2024.

Expanding the Philadelphia Footprint

Since taking over the South Philadelphia site, Hanwha has moved aggressively to scale operations and deploy fresh capital:

  • Workforce Growth: Workforce numbers have more than doubled since the company acquired the shipyard.
  • Capital Investment: Over the past year alone, Hanwha has poured more than $200 million into facility upgrades and operational capacity.

"We have more than doubled the workforce since we acquired the shipyard. We've put over $200 million into the shipyard in the past year," said Hanwha Defense USA CEO Michael Colter. "We are 'foot on the throttle' to make shipbuilding great again, and Pennsylvania is the heart of that."

Inside the $5 Billion Modernization Plan

The footprint expansion is part of a broader $5 billion modernization plan to transform the Philadelphia facility into a digitally enabled, high-efficiency manufacturing hub.

  • Infrastructure Upgrades: The capital program includes installing new docks, expanding production space, and constructing three quays.
  • Advanced Robotics: Hanwha is importing South Korean shipbuilding know-how and trainers to instruct the Philadelphia workforce on robotic welding and automated systems that few American yards currently run at scale.
  • Increased Output: The automated systems and process improvements are designed to push vessel production well beyond current levels.

Federal Orders Drive Expansion Timeline

The federal government is also putting substantial weight behind the South Philadelphia yard's growth:

  • National Security Multi-Mission Vessels (NSMV): A new $1.5 billion order is expected to support more than 2,000 production jobs, adding fresh urgency to Hanwha's expansion timeline.
  • U.S. Navy & Defense Demand: Growing federal contracts for specialized vessel construction and maritime defense platforms are solidifying the shipyard's role in regional manufacturing.

For the full scope of Hanwha's plans and what they could mean for Philadelphia's maritime economy, read the full report in the Philadelphia Business Journal.