Hanwha plans to significantly increase shipbuilding in Philadelphia to support U.S. efforts to boost domestic manufacturing.

David Kim, a native of Orange, Texas, now serves as the Chief Executive Officer of Hanwha Philly Shipyard, a prominent player in North America’s shipbuilding industry. After acquiring the Philadelphia shipyard for 0 million in the past winter, he is charged with spearheading an expansion initiative that promises to generate thousands of new jobs and enhance technological capabilities, including the introduction of advanced robotics.

The strategic location of the shipyard, where the Schuylkill and Delaware Rivers converges, offers vast potential for growth. Yet, the future trajectory of the operation depends significantly on U.S. government support in the form of subsidies, military contracts, and regulatory frameworks. The competitive landscape is challenging; the global maritime arena is increasingly dominated by low-cost shipbuilders in China and a growing naval presence from the country. Initiatives by previous administrations to bolster American shipbuilding, including President Donald Trump’s efforts, continue to evolve amid fluctuating policy directions.

Currently, the shipyard is 60% owned by Hanwha’s Systems division, which specializes in military equipment, and 40% by its Ocean division focused on commercial vessels. This ownership structure reflects Hanwha’s dual ambitions of thriving in both governmental contracts for the U.S. Navy and meeting domestic cargo transport needs as mandated by the federal Jones Act. In recent years, the shipyard transitioned from a period of decline—marked by a near collapse under previous owner Aker—to a healthier workforce of approximately 1,800 employees, with plans to hire an additional 3,000 within the next decade.

As Kim outlines his vision, the shipyard currently has pending orders amounting to .7 billion, ensuring a busy production schedule in the coming years. His approach leverages insights from experienced veterans from Hanwha’s South Korean facilities to accelerate output and efficiency. Furthermore, plans for investment in automation technology aim to enhance productivity, potentially allowing the shipyard to ramp up production from an average of 1.5 vessels per year to an ambitious target of ten.

Investments are also earmarked for enhancing existing facilities and acquiring state-of-the-art equipment necessary for constructing various naval vessels. Discussions are ongoing regarding additional acquisitions of land and technology that align with the Navy’s needs, particularly as the service contends with challenges in its shipbuilding capabilities. With a firm focus on modernizing operations and addressing the demands of both military and commercial maritime sectors, Hanwha Philly Shipyard is positioned to play a crucial role in revitalizing American shipbuilding, a sector vital for national security and economic growth.

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