Hanwha Group is entering the design program for the U.S. Navy's next-generation logistics ship. This marks the first case of a Korean company undertaking a U.S. Navy vessel program based at a local American shipyard since the launch of the MASGA (Make American Shipbuilding Great Again) project.
Hanwha Philly Shipyard and Hanwha Defense USA announced Wednesday that they signed a cooperation agreement with VARD, a naval and specialty vessel design firm, for the conceptual design of the U.S. Navy's Next-Generation Logistics Ship (NGLS). Hanwha Defense USA is a subsidiary of Hanwha Aerospace (012450.KS) based in Arlington, Virginia, responsible for developing and executing defense programs in the United States.
The two companies will collaborate with VARD, the prime contractor for the NGLS conceptual design program, to conduct market research and carry out conceptual design and refinement work for the new NGLS platform. They will also support producibility analysis, application of commercial shipbuilding techniques, and production cost analysis. The agreement includes options for functional design planning and specialized studies.
The NGLS is based on a more compact platform designed to perform fuel and supply replenishment as well as rearming operations at sea and on shore. The ship incorporates proven commercial technologies, ensuring high cost efficiency. The project is scheduled for completion in the first quarter of 2027.
This contract marks Hanwha's first U.S. Navy program win since acquiring Philly Shipyard. Since launching Hanwha Philly Shipyard in December 2024, Hanwha Group has invested more than $200 million (approximately 303.9 billion won) to strengthen production capabilities and expand the local workforce.
With this contract, Hanwha Group plans to accelerate its push into the U.S. shipbuilding and defense sectors. According to a January report by the Congressional Research Service titled "Navy Force Structure and Shipbuilding Plans: Background and Issues for Congress," the cost of building new U.S. Navy vessels is estimated to average $35.8 billion per year going forward.
"Hanwha is proud to participate in the design process for the U.S. Navy's next-generation logistics ship in collaboration with VARD," said Tom Anderson, president of the shipbuilding division at Hanwha Defense USA. "This contract is an important step in leveraging Hanwha's world-class shipbuilding capabilities to build the vessels the U.S. Navy needs to support American service members deployed across diverse maritime operational environments."