The U.S. shipbuilding industry is seeing a glimmer of hope as Hanwha Group, a South Korean company, steps in to provide much-needed assistance.
On a recent walkthrough of the Philly Shipyard, CEO David Kim shared his vision for revitalizing American shipbuilding by leveraging Hanwha’s extensive experience, advanced technology, and process expertise.
He expressed confidence in the potential contributions that Hanwha can make, not only to Philly Shipyard but also to the broader U.S. maritime industrial base.
In December, Hanwha Group acquired the Philly Shipyard for $100 million, committing to invest several times that amount to modernize the facility.
Plans include training over a thousand new workers and introducing cutting-edge equipment aimed at building naval ships and becoming the first U.S. builder of specialized liquefied natural gas tankers.
For years, the U.S. shipbuilding sector has faced significant challenges, with much of the production concentrated overseas in countries such as China, South Korea, Japan, and various European nations.
While only a handful of shipyards remain operational in the U.S., they predominantly focus on military vessels.
Revitalization of the shipbuilding industry is part of President Donald Trump’s broader strategy to bring manufacturing jobs back to the United States, although some critics argue that the expenses associated with building modern ships are often overlooked.
The path to revitalization, according to experts, lies in modernization and automation.
Currently, the Philly Shipyard employs around 1,800 workers, including numerous experts and personnel from Hanwha’s operations in South Korea.
These experienced workers are focusing on enhancing production efficiency while also training over 170 apprentices.
Since Hanwha’s acquisition, Kim has reported that several hundred jobs have been added to the workforce.
The shipyard currently produces one and a half ships per year, but Hanwha’s ambitious plans include implementing ‘smart yard technology’ to eventually increase that output to as many as 10 ships annually, raising sales projections to over $4 billion a year by 2035.
Hanwha’s subsidiary, Hanwha Ocean, is recognized as one of South Korea’s leading shipbuilders, with a production capacity of 40 ships per year at its facilities.
Meanwhile, East Asia continues to dominate the global commercial shipbuilding market.
In the past decade, Chinese shipbuilders have delivered 6,765 commercial ships, with Japan and South Korea contributing 3,120 and 2,405 ships, respectively.
In contrast, U.S. shipbuilders have only managed to deliver 37 vessels during that same period.
With President Trump’s administration promoting ‘made in America’ manufacturing, there is a growing effort among U.S. lawmakers to bolster the shipbuilding industry.
The bipartisan SHIPS for America Act proposes subsidies for shipyards as a means to revitalize this critical sector.
Kim emphasized that each ship constructed at the Philly Shipyard represents incremental growth for U.S. shipbuilding, creating jobs and fostering local supplier relationships.
At the shipyard, Hanwha is introducing innovative technologies from its operations in Korea, including computer-aided design, welding robotics, and virtual-reality training programs.
In a collaborative approach labeled ‘cobots,’ robots work side by side with human operators, focusing on tasks such as programming, operating, and repairing the robots.
Kyle Pernell, a computer-aided manufacturing and design coordinator, noted that the inclusion of Hanwha has accelerated progress at the shipyard.
Individuals from a variety of career backgrounds are enrolling in Hanwha’s comprehensive 36-month apprentice program, which encompasses training in welding, shipbuilding, outfitting, and machine operations.
Niecey Zlomek, who transitioned from being a hairstylist, has joined Hanwha’s machinery and propulsion department, working on lifeboats and aspiring to become a team leader.
Despite her initial inexperience and a fear of heights, Zlomek has found her passion in shipbuilding.
Reflecting on her first day, she mentioned her willingness to climb the side of a vessel and how her confidence has soared since joining Hanwha.
Moving forward, Hanwha aims to extend its reach into military shipbuilding by producing vessels and submarines for the Navy.
Having already built two ships for training cadets at state merchant marine colleges, with three more under construction, Hanwha has obtained preliminary approval to manufacture naval vessels.
Kim underscored the importance of aligning with government priorities, reiterating that Hanwha is committed to enhancing the capacity of the industry and the overall maritime industrial base.
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