The $269 million landing-ship award shows how investment in American shipyards can give overseas defense companies access to naval construction work.
The U.S. Navy’s effort to expand its shipbuilding capacity gained a new participant on Oct. 29, 2026, when Hanwha Defense USA secured a $269 million contract to build a medium landing ship in Philadelphia—a milestone for investors assessing whether foreign investment can help rebuild American maritime manufacturing.
The agreement with TOTE Services covers one vessel, with options for three more. Construction at Hanwha Philly Shipyard is scheduled to begin in the fourth quarter of 2027. The award marks Hanwha’s first contract to build a Navy ship since acquiring the yard in December 2024.
For the American defense industry, the significance extends beyond a single order. The contract brings another domestic yard into naval construction and tests a procurement approach intended to improve delivery schedules and control costs.
Rather than contracting directly with individual shipyards, the Navy has hired TOTE Services to select builders and oversee construction. The Navy announced the $2.2 billion vessel-construction-management contract on July 13, 2026, describing it as a way to apply commercial practices to military shipbuilding. TOTE holds the prime contract and manages the shipyard subcontracts.
Hanwha was the first builder selected through TOTE’s competitive bidding process. The Navy and Marine Corps plan a fleet of 35 medium landing ships, although that broader requirement represents potential demand rather than guaranteed orders for the Philadelphia yard.
The vessels are designed to transport Marines, equipment and supplies between coastal and island locations, supporting operations by smaller, dispersed forces. The proposed ship measures approximately 328 feet long and has a light displacement of roughly 2,645 long tons. The program’s first delivery is expected in 2030, according to TOTE.
For Hanwha, the award provides an early commercial test of its strategy of buying and upgrading an American shipyard. Its U.S. subsidiary, Hanwha Defense USA, is part of Hanwha Aerospace.
The Philadelphia operation previously concentrated on commercial vessels. It has also built and delivered four National Security Multi-Mission Vessels under TOTE’s management, providing an established workforce, supply chain and working relationship that the companies expect to draw on for naval construction.
Michael Coulter, Hanwha Defense USA’s chief executive, said the group had invested in workers and technology to prepare the yard for federal customers. He said Hanwha would work with TOTE to meet the Navy’s schedule and budget requirements.
The landing-ship contract follows other moves into defense-related work. Hanwha announced participation in conceptual design for the Navy’s Next Generation Logistics Ship on March 31, 2026. TOTE subsequently awarded the Philadelphia yard a contract to build a missile-range instrumentation vessel on Oct. 7, 2026.
The expansion gives substance to the U.S.-South Korean shipbuilding initiative known as MASGA, short for “Make American Shipbuilding Great Again.” For investors, the next test is execution: whether spending on facilities and workforce development produces ships on schedule and positions the yard to win additional orders.
Geopolitics remains another consideration. China imposed sanctions on five Hanwha Ocean-linked U.S. companies, including the Philadelphia yard, in October 2025, accusing them of supporting an American trade investigation. Beijing suspended those measures beginning Nov. 10, 2025, initially for one year.
