Hanwha Philly Shipyard Selected for $269M Navy Ship Deal
TOTE Services selected Hanwha Defense USA to build the U.S. Navy’s first Medium Landing Ship at Hanwha Philly Shipyard in a $269 million contract. The award…
Hanwha Philly Shipyard selected to build a $269 million U.S. Navy landing ship, with construction expected to start in the fourth quarter of 2027. TOTE Services chose Hanwha Defense USA for the Navy’s first Medium Landing Ship, a contract that could also lead to work on three additional vessels.
The award gives Hanwha Defense USA its first shipbuilding contract for the U.S. Navy. The initial deal covers one ship; the three additional vessels are options, not part of the confirmed order. The project will be carried out at Hanwha Philly Shipyard.
What does the Navy ship contract cover?
The $269 million contract falls under TOTE Services’ Vessel Construction Manager arrangement, which manages ship construction for the Navy and Marine Corps. TOTE Services said the competitive process produced terms it considers beneficial to the government and build positions that allow construction to begin in the fourth quarter of 2027.
“This award shows the speed at which the VCM model can move from RFP to contract,” TOTE Services President Jeff Dixon said. He said the company had secured build positions and credited the Navy’s leadership with changing how it delivers ships to the fleet.
The broader VCM contract is valued at $2.2 billion and supports a planned fleet of 35 Medium Landing Ships. The first vessel is expected to be delivered in 2030. The shipyard award is an execution step in the Navy and Marine Corps’ effort to operationalize Expeditionary Advanced Base Operations.
Shipyard prepares for naval construction
Hanwha Defense USA President and CEO Michael Coulter said the company had invested in the shipyard’s workforce and technology since Hanwha acquired Philly Shipyard in 2024. He described the program as a priority for the Navy and Marine Corps and said Hanwha aims to deliver on time and within budget.
Hanwha Defense USA Senior Vice President of Program Management Tim Glinatsis said company personnel had been working in Philadelphia since early this year to prepare the facility for naval work. The shipyard has already built and delivered four National Security Multi-Mission Vessels under the VCM model with TOTE Services, he said, and the company plans to draw on that experience for the landing ship.
The shipbuilding award follows Hanwha Defense USA’s announcement that it is in the process of acquiring a controlling stake in Hanwha Philly Shipyard. The contract brings a new Navy program to a facility that has already worked with TOTE Services on other vessels.
For the Navy and Marine Corps, the award adds a production site to a program intended to deliver a 35-ship fleet. Using multiple shipyards is part of the Navy’s approach under the VCM model, alongside an initial contract awarded to Fincantieri Marinette Marine in April 2026 for long-lead material procurement and production preparation.
The first Medium Landing Ship is expected to reach the Navy in 2030.
