Hanwha Philly Shipyard Wins $269 Million U.S. Navy Landing Ship Contract

Hanwha Philly Shipyard secured a $269 million contract to build one Medium Landing Ship, or LSM, for the U.S. Navy and Marine Corps. TOTE Services selected Hanwha Defense USA as the first shipbuilder under the LSM program’s $2.2 billion Vessel Construction Manager contract. The award includes options for three more ships.

Construction is expected to start in the fourth quarter of 2027 at the Philadelphia shipyard. The first vessel is scheduled for delivery in 2030. That timetable gives the yard a defined military production role after Hanwha acquired it in December 2024.

The award is Hanwha Defense USA’s first U.S. Navy shipbuilding contract. It also shows how the company plans to turn Philly Shipyard into a dual-use facility serving defense and commercial customers. TOTE is continuing discussions with Bollinger Shipyards and Fincantieri Marinette Marine, which are expected to help build the wider LSM fleet.

A Medium Landing Ship is a smaller amphibious vessel intended to transport Marine Corps personnel, equipment and supplies. Unlike a ship designed mainly for long-distance transport, its stated purpose is moving those loads between islands and coastal locations. The article identifies the Indo-Pacific as a particularly important operating region.

The vessel provides a sea link for forces and supplies in places where movement between islands and shore areas is central to operations. The article does not provide detailed specifications, such as the ship’s length, speed or carrying capacity. Its defining feature here is its smaller amphibious role.

The Navy and Marine Corps plan a fleet of 35 LSMs. TOTE Services’ initial contract can cover up to eight ships, beginning with Hanwha’s vessel. Additional shipbuilders, including Bollinger Shipyards and Fincantieri Marinette Marine, are expected to participate in construction.

Hanwha’s awarded contract is valued at $269 million and covers construction of one Medium Landing Ship. It also includes options for three additional ships, so the award could eventually cover four Hanwha-built vessels if all options are exercised.

The broader arrangement is larger. TOTE Services’ initial LSM contract covers up to eight ships, allowing more than one shipyard to participate. TOTE selected Hanwha as the first builder and is continuing contract discussions with Bollinger Shipyards and Fincantieri Marinette Marine.

The Navy and Marine Corps are planning a fleet of 35 Medium Landing Ships. That makes Hanwha’s award an opening step rather than the entire program. It gives the Philadelphia yard a position in a planned fleet while leaving room for additional awards, options and construction by other participating shipyards.

The Navy and Marine Corps need smaller amphibious ships because the LSM program is designed for movement between islands and coastal locations. These vessels carry personnel, equipment and supplies, linking Marine Corps forces with the places where they are needed. The article identifies the Indo-Pacific as the program’s particular focus.

The key mechanism is the ship’s size and amphibious purpose. An LSM is intended to serve routes and destinations involving islands and nearby coasts, rather than being described as a large ship for general ocean transport. The article does not give detailed operating specifications or explain a specific mission scenario.

The planned 35-ship fleet indicates that the need is expected to be broad and continuing. TOTE’s initial contract covers up to eight ships, with Hanwha selected first and Bollinger Shipyards and Fincantieri Marinette Marine expected to help build the fleet.

The award changes Hanwha Philly Shipyard from a mainly commercial facility being prepared for defense work into a yard with a U.S. Navy construction contract. Hanwha Defense USA won its first U.S. Navy shipbuilding award, creating a direct foothold in naval production.

The company can now apply its Philly Shipyard workforce, infrastructure and technology investments to an actual Navy program. The yard will build the first LSM, with construction expected to begin in the fourth quarter of 2027. Hanwha also plans to place the shipyard under the control of its U.S. defense subsidiary.

The broader direction is defense-led ownership with dual-use capacity. Hanwha says the yard is positioned to compete for both naval and commercial demand. Its earlier work with TOTE on four delivered National Security Multi-Mission Vessels provides relevant experience, while the LSM award may support additional government work.

A Vessel Construction Manager, or VCM, is the organizing contractor between the government and shipbuilders. TOTE Services manages the construction arrangement, runs the selection process and places work with qualified yards. This lets the government buy a fleet through a coordinated program instead of relying on one shipyard for every vessel.

The LSM example shows the mechanism. TOTE selected Hanwha Defense USA as the first builder under its $2.2 billion VCM contract. The award provides Hanwha with one ship and options for three more. TOTE is also discussing construction with Bollinger Shipyards and Fincantieri Marinette Marine.

That structure creates separate build positions across participating yards. TOTE said those positions allow construction to start in the fourth quarter of 2027. The article also describes TOTE’s earlier VCM oversight of the NSMV program at Philly Shipyard, where four of five training ships have been delivered.

U.S. shipyards serve military customers and commercial Jones Act shipping because both markets require domestic shipbuilding capacity. The Jones Act supports shipping between U.S. points using vessels that meet U.S. requirements, while naval work supports national defense. The article presents Philly Shipyard as a major Jones Act yard facing both demands.

Hanwha is responding by pursuing a dual-use model. It has invested in the Philadelphia yard’s workforce, infrastructure and technology, then won its first Navy award for an LSM. At the same time, the company says the yard remains positioned to compete for commercial and naval demand.

This balance reveals a practical link between security and industrial capacity. A defense-led yard can gain military work without abandoning commercial production. The article says the shift has raised questions about future Jones Act capacity, but Hanwha’s stated strategy is to maintain and expand the yard’s ability to build for both markets.