Hanwha Defense USA Takes Control of Philly Shipyard in US$237.6 Million Deal

Hanwha Defense USA (HDUSA) announced it will take control of Hanwha Philly Shipyard by acquiring a 60% majority stake in the Philadelphia shipyard through a joint venture led by HDUSA. The deal transfers control from Hanwha Systems, which currently holds that 60% stake, to the new joint venture, while Hanwha Ocean will retain its remaining 40%. According to a regulatory filing made in September in South Korea, the transaction is valued at approximately US$237.6 million, with closing expected on October 31.

The acquiring vehicle is Hanwha Defense USA Shipbuilding LLC, a joint venture between HDUSA and Hanwha FutureProof, and according to one source the exact deal value is equivalent to KRW 325.1 billion, or about US$243.1 million at the current exchange rate. Hanwha Systems' U.S. subsidiary, HS USA Holdings Corp, will sell 1,368 of the shipyard's 2,280 issued shares. This is not a new acquisition by Hanwha Group, which had already purchased Philly Shipyard for US$100 million in December 2024, but rather an internal reorganization of control. Retired Rear Admiral Tom Anderson, president of shipbuilding at HDUSA, will oversee U.S. operations, and Michael Coulter, president and CEO of Hanwha Defense USA, said the move seeks to align the group's government and commercial shipbuilding efforts.

The change in control comes as part of Hanwha's strategy to turn Philly Shipyard into a dual-use facility capable of building vessels for the U.S. Navy as well as for commercial customers. In August 2025, the group had announced a US$5 billion investment plan to expand dry docks and modernize production, with the goal of raising annual capacity to 20 vessels. The shipyard's workforce has doubled since the acquisition, reaching about 2,500 employees, and the company is seeking full certification for U.S. military shipbuilding by 2028. The shipyard recently secured a contract to build the first vessel of a new generation of Missile Range Instrumentation Vessels for the U.S. Missile Defense Agency.

The shipyard carries a long history of losses, posting seven consecutive years in the red between 2018 and 2024, and six consecutive quarters of losses since Hanwha took control, including an operating loss of more than US$14 million in the second quarter of this year. Reports cited by the source mention space constraints at the current Philadelphia site, along with high costs, supply shortages, and difficulties recruiting labor. Hanwha reported that it has invested about US$350 million in facility upgrades and approved an additional US$400 million, as part of the broader US$5 billion plan.