Hanwha Group has decided to invest USD 5 billion (approximately KRW 7 trillion) in the Philadelphia Philly Shipyard in the United States, which it acquired last year, officially launching the Korea-US MASGA (Make American Shipbuilding Great Again) project. The plan is to increase the current construction capacity from one vessel per year to 20 vessels. Hanwha Shipping, a local shipping company in the United States, has ordered 11 ships from Hanwha Philly Shipyard.

On the 26th (local time), Hanwha Group announced at the naming ceremony of the 'State of Maine' to commemorate the start of the MASGA project that it would invest USD 5 billion in Hanwha Philly Shipyard. The State of Maine is a National Security Multi-Mission Vessel ordered by the U.S. Maritime Administration (MARAD). A naming ceremony is an event where a ship is given its name after construction.

The naming ceremony was attended by President Lee Jae-myung and his wife, who had just concluded a Korea-US summit, along with Cho Hyun, Minister of Foreign Affairs, and Kim Jung-kwan, Minister of Trade, Industry and Energy. From the U.S. side, Pennsylvania Governor Josh Shapiro, Indiana Senator Todd Young, and U.S. Representative Mary Gay Scanlon were present.

After touring the Philly Shipyard, President Lee signed the guestbook, writing, "I look forward to a new horizon of the Korea-US alliance opening at Hanwha Philly Shipyard, a symbol of Korea-US shipbuilding cooperation."

Kim Dong-kwan, Vice Chairman of Hanwha Group, stated, "The naming ceremony is a result that shows the concrete implementation of investments in rebuilding the shipbuilding industry and nurturing skilled talent to lead future industries by both Korea and the U.S.," adding, "We will play a pivotal role in making American shipbuilding great again."

● Expanding Construction Capacity from 1 to 20 Vessels with USD 5 Billion Investment

The USD 5 billion investment funds are part of a USD 150 billion shipbuilding cooperation investment fund that played a leverage role in the Korea-US tariff negotiations. A Hanwha representative stated, "Once the method of forming the USD 150 billion fund is specified, we plan to inject and utilize the funds," adding, "The fund is expected to be contributed in the form of direct investment, guarantees, or loans."

Hanwha plans to use this to establish a new production base of 120,000 pyeong at Hanwha Philly Shipyard and secure two additional docks and three berths. A dock is a large structure built by digging the seaside to allow water to be drained and refilled for ship construction. A berth is a space where the final finishing work of a ship launched from the dock is conducted. Hanwha aims to expand Hanwha Philly Shipyard's current shipbuilding capacity from 1-1.5 vessels per year to 20 vessels.

Hanwha Philly Shipyard plans to introduce advanced technologies such as automation facilities and smart yards owned by Hanwha Ocean. A smart yard is a future-oriented shipyard that digitizes the shipbuilding process and improves production efficiency using the Internet of Things (IoT), artificial intelligence (AI), and robots.

Hanwha Philly Shipyard is a local U.S. shipyard acquired last year with a total investment of USD 100 million, with Hanwha Ocean and Hanwha Systems holding 40% and 60% stakes, respectively. It is the first time a Korean shipbuilder has acquired a U.S. shipyard. Philly Shipyard was established in 1801 as a U.S. Navy shipyard and was privatized in 1997. The State of Maine, which was launched at the naming ceremony, is the first completed ship since the re-launch of Hanwha Philly Shipyard. It is the third of five ships ordered by the U.S. Maritime Administration from Philly Shipyard, with the first and second ships delivered in 2023 and 2024. As a multi-mission vessel, it is used as a training ship for U.S. maritime students in peacetime and performs humanitarian aid and disaster relief missions in emergencies.

● Hanwha Shipping in the U.S. Places New Order for 11 Ships at Philly Shipyard

Hanwha Shipping, a shipping subsidiary established by Hanwha Group in the U.S., placed an order for 10 Medium Range (MR) tankers and one Liquefied Natural Gas (LNG) carrier at Hanwha Philly Shipyard. This is the first contract won by Hanwha Philly Shipyard related to the MASGA project. All 10 MR tankers will be built exclusively by Philly Shipyard, with the first ship expected to be delivered in early 2029.

Previously, in July, Hanwha Shipping also ordered an LNG carrier worth KRW 350 billion from Hanwha Philly Shipyard. It is the first time in 50 years that a U.S. shipbuilder has won an order for an LNG carrier.

Hanwha explained that Hanwha Shipping placed a large order with Hanwha Philly Shipyard in preparation for a potential requirement to use U.S. ships when exporting U.S.-produced energy. Currently, there is a movement in the U.S. to amend the 'Jones Act,' which was created to protect the domestic shipbuilding industry, to require all maritime cargo within the U.S. to be transported only by ships built in the U.S. Hanwha Shipping emphasized that it would support energy security for the U.S. and its allies and lead the revitalization of the U.S. maritime industry through the newly ordered ships.

In addition to Hanwha, major domestic shipbuilders are also jumping into the MASGA project. The previous day, HD Hyundai signed a Memorandum of Understanding (MOU) with U.S. private equity firm Cerberus Capital to acquire and modernize U.S. shipyards and strengthen supply chains. Samsung Heavy Industries also signed an MOU with U.S. Vigor Marine Group for the maintenance, repair, and overhaul (MRO) of U.S. Navy ships.

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