The Philadelphia-based shipyard Philly Shipyard has been fully acquired by Hanwha Systems and Hanwha Oceans.
The Korean companies were awarded the contract in June for US$100m. They are now officially starting work on the new “Hanwha Philly Shipyard”.
In September 2024, Hanwha received approval from the Committee on Foreign Investment in the United States (CFIUS). As part of the acquisition, David Kim assumed the role of Chief Executive Officer. Kim previously served as Executive Vice President for Hanwha Defense USA and played a key role in planning Hanwha’s acquisition of Philly Shipyard.
Hanwha strengthens presence in the US market
“Today marks the beginning of an exciting new chapter for Hanwha Philly Shipyard,” said Kim. “We want to grow and build on a long tradition of success by expanding production with advanced technologies and supporting the national revitalisation of U.S. shipyards.” They want to be a trusted U.S. shipbuilder for both commercial and government customers.
Hanwha aims to build on the success of Philly Shipyard, founded in 1997, which has delivered approximately 50% of all large oceangoing U.S. Jones Act commercial vessels since 2000, including tankers and container ships. The recent completion of a second National Security Multi-Mission Vessel (NSMV) for the Maritime Administration reinforces the shipyard’s strong position in the US market.
Hanwha Philly Shipyard to create jobs
Hanwha Philly Shipyard plans to create a “significant number of local jobs, expand the shipyard’s capacity and develop new markets”, according to the company. The Koreans are proud to join the Philadelphia community and said they are committed to deepening local relationships and promoting workforce development initiatives.
The shipyard was previously majority-owned by Kjell Inge Røkke’s Norwegian investment company Aker and was listed on the Oslo Stock Exchange. It primarily builds product tankers and container ships for domestic traffic and is located on the same site as the Philadelphia Naval Shipyard. The acquisition by Hanwha was announced in June.
Hanwha operates one of the largest shipyards in the world, Hanwha Ocean, which covers an area of approximately 4.9 million square metres on Goeje Island, South Korea. Hanwha Systems develops technologies for unmanned maritime systems, naval radars and sensors for manned and unmanned team (MUM-T) operations, and maintenance, repair and overhaul (MRO) platforms for naval combat systems.
“With Philadelphia’s rich shipbuilding history, Hanwha is eager to usher in a new era of success,” said new CEO Kim. “We want to build on the successes of Philly Shipyard, expand into the production of naval vessels and increase local employment opportunities. With Hanwha’s global reach, deep technological 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.”
