Philadelphia Shipyard Modernization by Hanwha Group (Hanwha Ocean): status and timeline

Milestones

Next · Two additional docks under construction

Hanwha acquires Philadelphia Shipyard2024Complete.
$5 billion modernization plan announcedAug 2025Complete.
Two additional docks under constructionTarget 2026Current milestone.
First MRIV deliveryTarget 2030Not yet reached.
Ramp to 20 ships/year capacityTarget 2029Not yet reached.

Most important updates

Hanwha announces $5 billion modernization plan for Philadelphia Shipyard, targeting 20 ships/yearAug 2025
Hanwha Ocean acquires Philadelphia Shipyard for $100 million2024

Upcoming

2026Two additional docks under construction (next)
2027Austal USA acquisition closing (if approved)
2027First new dock operational
2029Ramp to 20 ships/year capacity
2030First MRIV delivery

Current obstacles

US Navy program delaysMRIV has experienced delays; requires better cost control than typical Navy programs.
Legacy infrastructure constraints100+-year-old yards need modernization while maintaining continuous operations.
US labor and supply chainHigher labor costs than Korean yards; needs automation and process improvements.

Physics limits

Nuclear submarine expertiseHanwha lacks US Navy certification for nuclear submarines; would need tech-transfer approvals.
Steel and advanced materialsSupply of high-strength naval steel for submarines is constrained; ramping to 20/year needs contracts.

How it works

3 parts

Modular construction

Block assembly facility

Pre-fabricated ship sections off the main dock enable parallel work and faster assembly.

Dock capacity

Multiple docks for concurrent builds

Two additional docks enable simultaneous construction, increasing throughput.

Naval expertise transfer

Korean shipbuilding practices

Hanwha applies Geoje lessons to Philadelphia, including digital production planning.

Spec sheet

Spec	Philadelphia Shipyard Modernization
Modernization investment	$5 billion USD^R (reported)
Current annual production	Fewer than 2 vessels^R (reported)
Target annual production	Up to 20 vessels^R (reported)
Additional docks being built	2^R (reported)
Additional quays being built	3^R (reported)
Location	Philadelphia, Pennsylvania, USA^R (reported)

^R reported by the company

Update log

2 updates

Aug 2025

Major: Hanwha announces $5 billion modernization plan for Philadelphia Shipyard, targeting 20 ships/yearPressManufacturing

2024

Major: Hanwha Ocean acquires Philadelphia Shipyard for $100 millionPressCommercial

About Hanwha Group (Hanwha Ocean)

The team behind Philadelphia Shipyard Modernization

Hanwha Group (Hanwha Ocean)

Naval vessels, LNG carriers, shipbuilding

Hanwha Ocean is one of the Big Three naval shipbuilders in South Korea. Founded as DSME in 1973, rebranded in 2023. Builds naval vessels, LNG carriers and submarines.

One of the world's three largest naval shipbuilders, with expertise in submarines and LNG carriers.
In 2024, Hanwha acquired Philadelphia Shipyard; in 2026 announced $5B modernization plan.
In 2026, Hanwha bid $1.05–1.2B to acquire Austal USA, expanding US naval shipbuilding.

hanwhaocean.com (opens hanwhaocean.com)Company profile →

Founded: 197353 yrs
Headquarters: South Korea
Status: Public
Valuation: public
Staff: ~8,645Jan 2022
Works in: ManufacturingAutomated assembly
Coverage: 1 program · 3 updateslatest 1 Aug 2026checked 11 Oct
Customers: US Navy (opens navy.mil)
Partners: Austal Limited (opens austal.com)
Investors: Hanwha Aerospace (opens hanwha.com)

Spec

Philadelphia Shipyard Modernization

Modernization investment

$5 billion USD^R (reported)

Current annual production

Fewer than 2 vessels^R (reported)

Target annual production

Up to 20 vessels^R (reported)

Additional docks being built

2^R (reported)

Additional quays being built

3^R (reported)

Location

Philadelphia, Pennsylvania, USA^R (reported)