South Korea’s Hanwha Closes Philly Shipyard Purchase
Hanwha Systems and Hanwha Ocean announced on December 19, that the Korean conglomerate had successfully completed their $100 million acquisition of Philly Shipyard in Philadelphia, making Philly its first shipyard outside of South Korea.
Hanwha’s purchase of the shipyard was approved by the Committee on Foreign Investment in the United States in September, clearing the way for the finalization of the purchase announced in June.
The sale and renaming of Philly Shipyard to Hanwha Philly Shipyard also marks the end of Norwegian group Aker ASA’s nearly 20 years of involvement with the shipyard.
“Hanwha Philly Shipyard begins an exciting new chapter today,” said David Kim, Hanwha Philly Shipyard’s new CEO. “We plan to grow and build on a long tradition of success, by expanding production using advanced technologies, and supporting the national revitalization of U.S. shipyards. Together, we begin working toward our vision for Hanwha Philly Shipyard: to be a trusted U.S. shipbuilder, challenging and redefining sustainable maritime solutions for commercial and government clients. We intend to do that by pushing the boundaries of shipbuilding by combining people with technology to build best-in-class vessels.”
Hanwha sought to purchase Philly Shipyard as part of its campaign to acquire shipbuilding facilities in foreign countries seeking to modernize their navies, with the shipbuilder’s corporate strategy emphasizing exports of its naval and defense products in order to secure its return to profitability.
While Philly Shipyard primarily builds merchant ships that comply with the United States’ Jones Act requirements for US-built merchant ships, it also is building the US Maritime Administration’s new National Security Multi-Mission Vessel training ships for US maritime academies, and was part of a team contracted in 2023 to conduct a design study for the eventual replacement of the U.S. Navy’s current hospital ships.
“With Philadelphia’s rich history in shipbuilding, Hanwha is eager to usher in a new era of success,” CEO David Kim said. “We aim to build on Philly Shipyard’s achievements, expand into naval vessel production and increase local employment opportunities. With Hanwha’s global scale, deep technology expertise, and more than 50 years of shipbuilding experience we look forward to driving remarkable growth, and we can’t wait to embark on this new journey as Hanwha Philly Shipyard.”