Hanwha and Samsung Heavy Industries will for the first time directly participate in the design of U.S. naval vessels.

Hanwha announced on the 30th of last month (local time) that its U.S. subsidiaries Hanwha Philly Shipyard and Hanwha Defense USA will collaborate with VARD, a U.S.-based specialist in naval and special-purpose vessel design, to take part in the U.S. Navy’s Next Generation Logistics Ship (NGLS) concept design program.

This contract is Hanwha’s first U.S. Navy-related order won locally after it formally acquired Philly Shipyard in December 2024. It is also the first case since the launch of the “MASGA (Make American Shipbuilding Great Again)” project, aimed at reviving the U.S. shipbuilding industry, in which a Korean company executes a U.S. Navy program from a local base. Hanwha expects this to serve as a springboard for a full-fledged expansion of its shipbuilding and defense businesses in the United States.

The NGLS is a vessel that plays a core role in providing the U.S. Navy with fuel, supplies, and rearmament support at sea and on land. It is designed as a smaller, more efficient and agile support ship that compensates for the limitations of existing large replenishment ships. Its construction cost is estimated at around USD 450 million (about KRW 600 billion), or approximately 50–60% of that of a large replenishment ship. The U.S. Navy is reportedly planning to secure at least around 13 NGLS vessels.

Hanwha plans to carry out concept design and improvement work on the NGLS platform together with the prime contractor VARD after conducting market research. This will include analysis work to reduce production costs by applying commercial shipbuilding methods developed over the years, as well as functional design planning and specialized studies. The project is scheduled for completion in the first quarter (January–March) of next year.

According to the U.S. Congressional Research Service (CRS), the U.S. Navy’s future new ship construction budget is projected to reach an annual average of about USD 35.8 billion (around KRW 48 trillion). Targeting this market, Hanwha has invested more than USD 200 million (about KRW 270 billion) to bolster production capacity and expand the workforce at Philly Shipyard, which it acquired in December 2024. The company has also announced a plan to invest an additional USD 5 billion (around KRW 7 trillion) to increase Philly Shipyard’s annual shipbuilding capacity from the current 1.5 vessels to 20 vessels.

U.S. President Donald Trump also unveiled a vision for building a “Golden Fleet” of large warships in December last year, referring to the Philadelphia shipyard in which Hanwha has invested by saying, “That was a great shipyard. It was closed long ago, but it has reopened and is working with the U.S. Navy and private companies.”

Tom Anderson, President of Hanwha Defense USA, said, “This contract is an important step in enabling Hanwha’s world-class shipbuilding capabilities to be utilized in the construction of vessels that will support U.S. service members.” Hanwha Defense USA is a subsidiary of Hanwha Aerospace based in Arlington, Virginia, and is responsible for the development and execution of defense programs in the United States.

Samsung Heavy Industries is also scheduled to participate in the NGLS design work together with General Dynamics NASSCO of the United States, with which it signed a business cooperation agreement in December last year.

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