Hanwha Defense USA announced a $269 million contract award to build a Medium Landing Ship (LSM) for the U.S. Navy and Marine Corps at the Hanwha Philly Shipyard in Philadelphia. The contract, awarded by TOTE Services, the vessel construction manager for the program, includes options for three additional ships, potentially increasing the contract value further and reinforcing long-term shipbuilding work at the facility.
This contract marks Hanwha’s first U.S. Navy shipbuilding order since acquiring the Philadelphia shipyard in December 2024. The LSM program aims to support expeditionary operations by the U.S. Marine Corps, providing capabilities for transporting and deploying personnel, vehicles, equipment, and supplies in contested coastal and island environments.
Work on the initial ship is scheduled to begin in the fourth quarter of 2027, with a target delivery date in 2030. The buildup of production at Hanwha Philly Shipyard aligns with broader efforts to strengthen U.S. domestic shipbuilding capacity, particularly in vessels critical to support amphibious and expeditionary forces.
The LSM contract is part of a larger $2.2 billion vessel construction management agreement under which TOTE Services manages the production of up to 35 ships in this class. The ships will bring enhanced capabilities tailored for littoral operations, reflecting evolving military needs in an increasingly complex global security environment.
This development points to growing U.S. investment in modernizing and expanding amphibious transport fleet capacity. The Hanwha shipyard’s involvement not only boosts industrial activity and skilled labor opportunities in Philadelphia but also adds to the competitiveness of American maritime and defense manufacturing.
As the program advances, the shipyard is expected to ramp up workforce and operational capabilities, marking a notable step in revitalizing U.S. naval shipbuilding with a focus on efficiency, technical innovation, and strategic readiness.
