SEOUL, October 31 (AJP) - Hanwha Defense USA, a subsidiary of South Korea's Hanwha Aerospace, has secured a $269 million contract to build a landing ship for the U.S. Navy and Marine Corps, marking its first U.S. Navy shipbuilding contract.
The company was selected by U.S. maritime services firm TOTE Services to construct one Landing Ship Medium (LSM) at Hanwha Philly Shipyard in Philadelphia, with options to build three additional vessels, according to statements released by the companies on Thursday and Friday.
The selection followed a competitive bidding process launched in July under TOTE Services' Vessel Construction Manager (VCM) program, which oversees ship construction for the U.S. Navy and Marine Corps.
Construction is scheduled to begin in the fourth quarter of 2027.
The contract forms part of TOTE Services' broader $2.2 billion vessel construction management agreement, which supports the Navy and Marine Corps' plans to develop a fleet of 35 medium landing ships. The initial contract covers up to eight vessels, with the first ship under the broader program expected to be delivered in 2030.
The LSM program is designed to support the transportation of Marines, military vehicles and equipment between islands and coastal areas, particularly as the U.S. military strengthens its ability to conduct dispersed operations in the Indo-Pacific.
Hanwha acquired Philly Shipyard in 2024 and has since invested in expanding its workforce and technological capabilities to prepare the facility for U.S. naval construction.
"Hanwha looks forward to working with TOTE Services to ensure an on-time and on-budget delivery," said Michael Coulter, president and CEO of Hanwha Defense USA.
TOTE Services President Jeff Dixon said the competitive selection process had secured favorable contractual terms while allowing construction to begin in late 2027.
The Philadelphia shipyard has already built and delivered four National Security Multi-Mission Vessels under TOTE Services' vessel construction management program for the U.S. Maritime Administration.
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