- Investment targets a productivity boost to 10 vessels a year by 2035.
- Expansion plan linked to Korea–U.S. tariff negotiations.
- White House lists Hanwha Ocean’s investment in official disclosures.
Hanwha Ocean is gearing up to invest an extra $70 million (around 94.5 billion won) into the Philadelphia shipyard it picked up last year. This investment is aimed at ramping up the yard’s annual dock productivity to about 10 vessels by 2035, reports Chosun Biz.
Strategic Role in Korea–U.S. Cooperation
This move comes at a time when the shipbuilding sector is becoming a pivotal player in the ongoing Korea–U.S. tariff discussions. Observers in the industry see Hanwha Ocean’s decision as a way to bolster cooperation between the two nations in shipbuilding.
White House Disclosure
On the 24th, sources from the shipbuilding industry revealed that the U.S. White House recently shared investment plans from global corporations on its website, showcasing Hanwha Ocean’s $70 million expansion project in Philadelphia.
From Acquisition to Expansion
Hanwha Ocean took over the shipyard in 2023 with an initial investment of $100 million (about 140 billion won). Initially, there were some doubts about how effective the acquisition would be, but the mood shifted after U.S. President Donald Trump showed interest in collaborating on shipbuilding with Korea.
Increasing Capacity and Revenue Potential
The company has previously announced its intention to boost annual shipbuilding capacity from the current 1–1.5 vessels to over 10 by 2035. To make this happen, they plan to invest further in expanding dock facilities. If all goes well, the Philadelphia yard could bring in around $4 billion in annual revenue and establish itself as a medium-sized shipyard.
Support for U.S. Navy Operations
With the help of Korean shipbuilding technology, the Philadelphia yard is set to become a key base for maintenance, repair, and overhaul (MRO) of U.S. Navy vessels, which will further enhance defence and industrial collaboration.
Symbol of Bilateral Partnership
The Philadelphia shipyard has turned into a symbol of the Korea–U.S. shipbuilding cooperation initiative, dubbed Make America Shipbuilding Great Again (MASGA). The Korean government is likely to leverage this project as a bargaining chip in its quest for tariff reductions.
Presidential Visit Scheduled
President Lee Jae-myung is set to visit the Philadelphia shipyard on the 26th (local time), underscoring its growing importance in bilateral relations and industrial strategy.
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Source: Chosun Biz
