Historic Philadelphia Shipyard Gets $5 Billion Korean Makeover
The United States' most ambitious shipyard revival project just took on an even greater challenge. Philly Shipyard, recently acquired by South Korean naval giant Hanwha Ocean, must now attempt what it has never done before: build a nuclear-powered submarine. This comes after President Trump recently announced his support for South Korea to construct such a vessel in the United States, specifically naming the historic Philadelphia facility as his preferred location.
When Hanwha purchased the struggling Philly Shipyard for $100 million last year, the American site was operating at a loss. Today, it stands at the center of South Korea's $150 billion pledge to help the Trump administration revitalize American shipbuilding - representing one of the most ambitious industrial turnaround projects the U.S. has seen in decades.
The Daunting Scale of the Challenge
The statistics reveal the enormity of the task ahead. America currently produces less than 1% of the world's commercial ships, while China dominates global shipbuilding with more than 230 times the shipping capacity of the United States. The Philadelphia facility currently produces roughly one commercial vessel annually - approximately what Hanwha manufactures in just one week at its South Korean operations.
Hanwha has ambitious plans to transform this output, aiming to increase Philly Shipyard's production to 20 ships per year, expand the workforce by thousands, and introduce new heavy cranes, robotics, and training facilities. The company plans to invest $5 billion into the site to rebuild a shipbuilding workforce and supply ecosystem that has largely disappeared from American shores.
David Kim, the Texan who moved from Hanwha's defense affiliate to become Philly Shipyard's new CEO, emphasized the need for change. "We've got to change. We can't continue to do things the way we've been doing them," Kim stated, indicating plans to bring South Korean shipbuilding approaches to Philadelphia.
The Nuclear Submarine Hurdle
The prospect of building a nuclear-powered submarine represents both an opportunity and a significant challenge. Hanwha has never constructed a nuclear-powered submarine, and the United States has traditionally closely guarded such nuclear technology, even from close allies like South Korea.
In the days following Trump's announcement, top Seoul officials and lawmakers have expressed doubts about Philly Shipyard's capabilities. South Korean Defense Minister Ahn Gyu-back stated that the Philadelphia facility has "significant shortcomings in terms of technological capabilities, workforce and facilities" for building a nuclear-powered sub, which is destined for South Korea's navy. He suggested localized production might be a more reasonable option.
Despite these concerns, the company remains optimistic. "With new technologies, investment in American workers, and deep partnership with Korea, Philly Shipyard can again become a center for advanced commercial and naval construction," said Alex Wong, the company's chief strategy officer.
Legal Hurdles and Workforce Expansion
American law currently forbids the construction of U.S. military or commercial vessels outside the country. However, there are moves to relax some restrictions for trusted partners like South Korea or Japan, with a House bill proposed in August addressing these impediments.
"Why shouldn't we help each other?" asked Representative Ed Case, a Democrat from Hawaii and one of the bill's sponsors, highlighting the potential benefits of international cooperation.
The shipyard is already seeing signs of transformation. Following the Hanwha acquisition, applications for the company's multiyear apprenticeship program have tripled, with hundreds of people now competing for just 25 available slots in each incoming group. These roles lead to union-scale jobs with starting annual salaries of approximately $48,000.
More than 120 apprentices will enter Hanwha this year, with plans to increase this to 500 annually in future years, according to Megan Heileman, who oversees Hanwha's Philly Shipyard apprenticeship program. "A lot of these candidates have bachelor's or master's degrees," she noted. "They're just looking for something different."
A New Generation of American Shipbuilders
The success of America's shipbuilding rebound will depend on young workers like Eion Phillips, a 26-year-old from Williamstown, New Jersey. Phillips comes from shipbuilding lineage - his great-grandfather worked at the Philadelphia Naval Shipyard starting in the 1950s and eventually rose to foreman. However, until a friend mentioned Hanwha's hiring spree this spring, Phillips had never considered continuing the family tradition, having previously worked as a mailman and commercial landscaper.
"It's exciting to know there's going to be more to do, more opportunity, more places to expand and even grow," Phillips said after joining the company and encouraging two friends to apply as well.
The shipyard received significant validation over the summer when the shipping subsidiary of Hanwha placed an order for a dozen medium-range tankers and liquefied-natural-gas vessels - the largest single purchase in the U.S. shipbuilding industry in decades, with the first ship targeted for delivery in 2028.
Illinois Senator Tammy Duckworth, a Democrat who met with South Korean officials earlier this year, summarized the strategic importance of the partnership: "The only way we can build ships fast enough is to partner with a leading shipbuilding nation like Korea."
As the historic Philadelphia shipyard undergoes its Korean-led transformation, complete with freshly painted Hanwha orange cranes and a workforce blending American and Korean expertise, the ambitious project represents not just an industrial revival but a test of international partnership in the face of global competition.
