Philadelphia:Hanwha Defense USA, a subsidiary of South Korea's Hanwha Aerospace Co., has been awarded a $269 million contract to construct a medium landing ship (LSM) for the U.S. Navy and Marine Corps. This marks the company's first shipbuilding contract with the U.S. Navy.
According to Yonhap News Agency, the contract was awarded by U.S. maritime services firm Tote Services, which selected Hanwha Defense USA to build one LSM at Hanwha Philly Shipyard in Philadelphia. The contract includes options for the construction of three additional vessels.
The selection process was competitive and conducted under Tote Services' vessel construction management program, which manages shipbuilding contracts for both the U.S. Navy and Marine Corps. Hanwha Defense USA's President and CEO, Michael Coulter, highlighted the company's significant investments in workforce and technology following the acquisition of Philly Shipyard in 2024, which positioned them to secure this contract.
Construction of the vessel is slated to commence in the fourth quarter of 2027. The broader program managed by Tote Services is part of a $2.2 billion contract supporting the Navy and Marine Corps' plan to build a fleet of 35 LSMs, with the first ship expected to be delivered in 2030.
The contract announcement coincides with Hanwha Defense USA's efforts to acquire a controlling stake in Hanwha Philly Shipyard, reflecting the South Korean defense group's strategic move to strengthen its footprint in the U.S. shipbuilding sector.