Hanwha Defense USA became the first shipyard selected for construction under TOTE Services’ Medium Landing Ship (LSM) programme for the US Navy and Marine Corps. The $269 million contract covers the construction of one vessel at Hanwha Philly Shipyard, with options for three additional vessels.
The selection of Hanwha Defense USA (HDUSA) was made under TOTE Services’ Vessel Construction Manager (VCM) contract and marks the company’s first shipbuilding contract for the US Navy.
Hanwha Defense USA President and CEO Michael Coulter stated that Hanwha had invested in workforce development and technology to support shipbuilding activities for the US Navy and other federal customers following its acquisition of Philly Shipyard in 2024. Coulter emphasised that the Maritime Portfolio Acquisition Executive (PAE Maritime) had clearly identified the LSM programme as a priority for the US Navy and Marine Corps. He also stated that Hanwha would work with TOTE Services to ensure the vessel is delivered on time and within budget.
TOTE Services President Jeff Dixon emphasised that the contract demonstrated how quickly the VCM model could move from a request for proposals to contract award, with the competitive process securing favourable contract terms for the government. Dixon stated that shipbuilding slots had been secured to enable construction of the vessel to begin in the fourth quarter of 2027. He also noted that PAE Maritime was helping overcome existing obstacles to deliver critical capabilities to the Navy more quickly and efficiently.
The Future of Hanwha Defense USA and Philly Shipyard
HDUSA Senior Vice President of Program Management Tim Glinatsis stated that work had been underway in Philadelphia since the beginning of the year to prepare the shipyard for military shipbuilding activities. He noted that Hanwha Philly Shipyard had built and delivered four National Security Multi-Mission Vessels under the VCM model with TOTE Services and that the company would draw on this experience for the LSM project.
Hanwha Defense USA also announced this week that it was in the process of acquiring a controlling stake in Hanwha Philly Shipyard. TOTE Services’ $2.2 billion VCM contract supports the planned 35-vessel LSM fleet for the US Navy and Marine Corps, with the first vessel expected to be delivered in 2030.
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Source: C4Defence – Hanwha
