Hanwha plans to transform Philly Shipyard
Hanwha Ocean’s professionals have been dispatched to increase productivity. Investment in facilities will also be allocated to upgrade the shipyard, which has seen little investment since the 1990s
By investing in equipment and introducing new technologies, Hanwha aims to build the first LNG carrier in the US
HANWHA Philly Shipyard aims to generate $4bn in sales by 2035, which would represent about a 10-fold increase on 2024 figures.
It also plans to increase its annual vessel production from the current 1.5 to 10 by 2035, as well as building liquefied natural gas carriers for the first time in US history.
Hanwha Group recently invited South Korean analysts to its Hanwha Philly Shipyard, which was renamed after the South Korean conglomerate acquired the US shipbuilder Philly Shipyard from Aker for $100m in December 2024, to announce its long-term plan.
The 2035 sales goal of $4bn is more than 10 times higher than the yard’s sales last year, which were $368m — and almost half of Hanwha Ocean’s sales volume in 2024, which was $7.8bn.
In order to achieve these goals, Hanwha Ocean has sent over some 50 professionals from South Korea to work on improving production efficiency.
Hanwha Philly Shipyard has two identical graving docks, each measuring 330 metres long by 45 m wide. Dry Dock 4 is used for the erection of vessels, while Dry Dock 5 is a wet berth for the final outfitting and commissioning of vessels.
Hanwha plans to resume operation of Dry Dock 5 for shipbuilding, and increase production at each dock to build three to four ships per year, with the aim of achieving an annual production total of eight to 10 vessels by 2035.
As little investment has been made in equipment at the Hanwha Philly Shipyard since the 1990s, Hanwha will introduce welding robots, automated equipment, safety cameras and sensors, and a monitoring system to transform the shipyard into a smart yard. The current workforce of 1,500 will increase to 3,000 by 2035 to boost production.
A Hanwha Ocean official told Lloyd’s List the amount of the investment would not be disclosed.
Meanwhile, in light of the United States Trade Representative’s plans to require LNG exports to be transported on US-built, US-flagged and US-operated ships, Hanwha aims to build the first LNG carrier in the US.
To this end, it will bring Hanwha Ocean’s technologies to the shipyard, which has primarily built 3,600 teu containerships and 50,000 dwt product tankers.
Hanwha intends to establish a portfolio of merchant vessels and auxiliary ships in the future. As the US aims to establish a fleet of 250 US-flagged vessels engaged in international commerce under the SHIPS for America Act, Hanwha aims to take a substantial share of the total order.
Since 2000, Hanwha Philly Shipyard has delivered around 50% of all large oceangoing commercial Jones Act vessels.
In addition, the shipyard is considering supplying blocks and modules to other US shipyards, as demand for these is expected to increase in line with the predicted growth in shipbuilding orders.
“The US has labour costs that are more than three times higher than in South Korea, as well as low productivity,” said Daol Investment & Securities an analyst Choi Gwang-shik.
“However, newbuilding prices in the US are more than three times higher than in South Korea. Given this, Hanwha Philly Shipyard is expected to achieve sales of $2.9bn and operating profits of $290m after 10 years, through improving productivity and managing processes to meet delivery schedules.”
