Hanwha Philly Shipyard and Hanwha Defense USA announced on March 30 (local time) that they have signed a cooperation agreement for the conceptual design project of the U.S. Navy’s Next Generation Logistics Ship (NGLS) with VARD (VARD Marine US), a ship and special vessel design company.

The two companies, in cooperation with VARD, the prime contractor for the NGLS conceptual design project, plan to conduct market research and perform conceptual design and improvement work for the new NGLS platform. They will also support manufacturability, application of commercial shipbuilding methods, and production cost analysis. Options for functional design planning and special studies are also included.

The NGLS will perform fuel and material resupply, rearmament, and other tasks at sea and on land, based on a more compact platform. It boasts high cost-efficiency due to the application of already proven commercial technologies. All these projects are scheduled to be completed in the first quarter of 2027.

With this contract, Hanwha has secured its first U.S. Navy project since acquiring Philly Shipyard. Since the launch of Hanwha Philly Shipyard in December 2024, Hanwha Group has invested over $200 million to strengthen production capabilities and expand local workforce, among other efforts.

There is also an assessment that this order marks the full-fledged expansion of Hanwha Group’s shipbuilding and defense businesses within the United States. According to ‘Naval Force Structure and Shipbuilding Plans: Background and Issues for Congress,’ published by the U.S. Congressional Research Service last January, the cost of new vessel construction for the U.S. Navy is estimated to reach an annual average of $35.8 trillion in the future.

Tom Anderson, President of Hanwha Defense USA’s Shipbuilding Business Division, stated, “Hanwha is proud to participate in the design process of the U.S. Navy’s Next Generation Logistics Ship in cooperation with VARD.” He added, “This order is a significant step in leveraging Hanwha’s world-class shipbuilding capabilities to construct the vessels the U.S. Navy needs to support U.S. service members deployed in various maritime operational environments.”

Hanwha Defense USA is a subsidiary of Hanwha Aerospace, located in Arlington, Virginia, USA. It is responsible for the development and implementation of defense businesses across all domains – land, sea, and air – within the United States.

Meanwhile, earlier this month, Hanwha Philly Shipyard delivered its first vessel since being acquired by Hanwha. Philly Shipyard is currently engaged in the construction and design of two National Security Multi-Mission Vessels (NSMV), ten Medium Range (MR) tankers, and two Liquefied Natural Gas (LNG) carriers, among others. The ten tankers and two LNG carriers were ordered by Hanwha Shipping, Hanwha Ocean’s U.S. shipping corporation. Philly Shipyard is expanding its production capabilities, including increasing workforce recruitment, to deliver vessels on time.

Hanwha is also pursuing aggressive expansion to enhance Philly Shipyard’s vessel construction capabilities. The company plans to invest approximately $5 trillion to increase Philly Shipyard’s annual vessel construction capacity from the current level of 1.5 vessels to 20 vessels. To achieve this, it plans to secure two additional docks and three quays, and establish a new block production base spanning approximately 36,336 m2.

Source: BusinessKorea