Hanwha Group has unveiled an ambitious roadmap to increase the annual revenue of Philly Shipyard, which it acquired last year, to 5.6 trillion won , more than ten times its current level, within the next ten years. The company also plans to expand the shipyard’s production capacity to ten ships per year, a sevenfold increase from current levels.

According to industry sources on May 19, Hanwha shared this vision during a site visit event at Philly Shipyard, which was attended by Korean analysts. During the event, Hanwha revealed plans to grow the shipyard’s revenue from $368 million (510.2 billion won) in 2024 to $4 billion (5.6 trillion won) by 2035. This target represents nearly half of Hanwha Ocean’s total revenue of 10.78 trillion won recorded last year.

Hanwha also announced plans to increase Philly Shipyard’s current production capacity, from approximately 1.5 ships per year to a maximum of 10 ships annually by 2035. At present, the shipyard operates docks No. 4 and No. 5, with Dock 4 used for shipbuilding and Dock 5 serving as a berth for mooring vessels. Hanwha plans to resume operations at Dock 5 and boost production at each dock to three to four ships per year, raising total annual output to between eight and ten ships. To achieve this, Hanwha has dispatched over 50 experts to the shipyard to assess current conditions and carry out initiatives to improve production efficiency and modernize facilities.

Philly Shipyard has reportedly seen little investment since its facilities were built in the 1980s. Industry estimates suggest that more than 100 billion won will be required to modernize the shipyard’s infrastructure. Hanwha plans to introduce welding robots and other automated equipment, and to double the current workforce from 1,500 to 3,000 employees by 2035 in a bid to enhance productivity.

Hanwha’s positive outlook is also supported by signs of a revival in the U.S. shipbuilding industry. The United States recently announced plans to expand its strategic maritime fleet to 250 vessels. Under the Jones Act, which mandates that ships operating along U.S. coastal routes must be built in American shipyards, there is a high likelihood that new orders will go to domestic shipbuilders. Philly Shipyard has historically handled about 50 percent of such U.S.-based shipbuilding orders under the Jones Act. Hanwha’s strategy is to expand production capacity and secure increased order volumes.

In addition, the Office of the United States Trade Representative (USTR) has announced a policy requiring that a certain proportion of U.S.-produced liquefied natural gas (LNG) exports be transported on ships built in the United States, along with imposing tariffs on Chinese-made ships. Philly Shipyard currently specializes in constructing container vessels with a capacity of 3,600 twenty-foot equivalent units (TEUs) and crude oil tankers with a deadweight tonnage (DWT) of 50,000. However, with technology transferred from Hanwha’s Geoje Shipyard in South Korea, the company could also enter the LNG carrier market. Since no American shipbuilder has yet constructed an LNG carrier, Hanwha could become the first to build such a vessel in the United States if its roadmap comes to fruition.

Source:Business Korea