Hanwha Philly Shipyard Secures First U.S. Navy Contract
Cubierto por 3 fuentesPublicado
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TOTE Services announced the selection of Hanwha Defense USA (HDUSA) as the first shipyard under its Vessel Construction Manager (VCM) contract for the U.S. Navy and Marine Corps' Medium Landing Ship (LSM) program. The award covers construction of one LSM, valued at $269 million, at Hanwha Philly Shipyard, with options for three additional vessels, which could bring the total order value to approximately $1 billion if all options are exercised.
The announcement comes in the same week that Hanwha Defense USA disclosed it is in the process of acquiring a majority stake in Hanwha Philly Shipyard, a step that would move the yard toward ownership led by the company's defense division, as part of its expansion into U.S. military shipbuilding.
TOTE Services' VCM contract, valued at $2.2 billion, supports the Navy and Marine Corps' planned fleet of 35 LSMs, with a base contract covering up to eight vessels. Construction of the first vessel is expected to begin in the fourth quarter of 2027, with delivery slated for 2030.
Hanwha acquired Philly Shipyard in December 2024 and has since made investments in workforce, infrastructure and technology to enable its entry into military shipbuilding. The yard has already built and delivered four of the five National Security Multi-Mission Vessels (NSMVs) under the VCM model with TOTE Services, experience that, according to Michael Coulter, President and CEO of HDUSA, and Tim Glinatsis, Senior Vice President of Program Management at HDUSA, will be leveraged for the new LSM program.
TOTE Services continues contract negotiations with Bollinger Shipyards and Fincantieri Marinette Marine, both also designated under the VCM contract, which are expected to take part in building the LSM fleet. The shift toward defense-oriented ownership has also raised questions about the future balance between military and commercial production at the shipyard, to which a company spokesperson stated that Hanwha Philly Shipyard is positioned to compete and build for both naval and commercial demand as a dual-use facility.
