Hanwha Defense USA Wins $269 Million Navy Ship Contract
Hanwha Defense USA secured a $269 million contract to build a Medium Landing Ship for the U.S. Navy at the Philadelphia shipyard.
TOTE Services has selected Hanwha Defense USA to construct the first Medium Landing Ship (LSM) for the U.S. Navy and Marine Corps. The $269 million contract covers the construction of one vessel at the Philadelphia shipyard, with options for three additional ships. Construction is scheduled to begin in the fourth quarter of 2027, with delivery expected in 2030.
The award marks the first U.S. Navy shipbuilding contract for Hanwha Defense USA since its parent company, Hanwha Group, acquired the Philadelphia facility in December 2024. The selection was made under a $2.2 billion Vessel Construction Manager (VCM) contract awarded to TOTE Services. To support this transition, Hanwha is restructuring the Philadelphia facility under its U.S. defense subsidiary to create a dual-use military and commercial shipyard.
The LSM program intends to provide the Marine Corps with a fleet of 35 shallow-draft amphibious vessels to transport personnel and equipment, specifically to enhance distributed operations in contested littoral areas of the Indo-Pacific. This agreement aligns with the Make America Shipbuilding Great Again initiative and broader bilateral cooperation between South Korea and the United States to revitalize American naval construction. TOTE Services continues to hold discussions with Bollinger Shipyards and Fincantieri Marinette Marine for the remainder of the LSM fleet.
