Hanwha Ocean eyes U.S. Navy repair orders as global ambitions grow

South Korea’s Hanwha Ocean is charting an ambitious course to strengthen its presence in the global naval shipbuilding industry, with a sharp focus on the United States. The company is targeting overseas military vessel revenue of around 4 trillion won (approximately $2.91 billion) by 2030—nearly four times its projected defense revenue for 2024.

In a recent media interaction, a senior Hanwha executive shared that the company is actively pursuing additional U.S. Navy maintenance and overhaul contracts. While such orders may not deliver high profit margins, the executive emphasized their strategic importance, citing the value of gaining experience with U.S. Navy procedures as a stepping stone toward larger shipbuilding opportunities.

Hanwha Ocean, formerly known as Daewoo Shipbuilding, is one of the world’s top shipbuilders. As of March 2025, its order backlog stood at $31.43 billion. In 2024, the company acquired the Philadelphia Shipyard in a move aimed at deepening its involvement in the U.S. defense sector and leveraging local infrastructure to gain a competitive edge.

The expansion coincides with growing political interest in revitalizing the U.S. shipbuilding industry. Former President Donald Trump has pledged significant investment in the sector, expressing concern about the United States falling behind countries like China and South Korea in naval capabilities. His push has renewed discussions around cross-border cooperation in defense manufacturing.

That said, existing U.S. legislation—particularly the Byrnes-Tollefson Amendment under the Department of Defense Appropriations Act—continues to restrict foreign-owned shipyards from constructing vessels for the U.S. Navy, even if those shipyards operate domestically. Hanwha is currently seeking the necessary licensing to overcome this hurdle and position its Philadelphia facility as a viable contributor to U.S. naval programs.

The company sees opportunity not just in infrastructure but in process improvement. Speaking about the challenges of adapting South Korea’s advanced manufacturing systems to the U.S. context, the executive noted that automation alone isn’t enough. “The U.S. shipbuilding sector hasn’t faced strong competition in decades. Facilities are outdated, and there’s a shortage of skilled labor,” he said.

To address that, Hanwha plans to modernize facilities, train workers, and introduce efficient production practices honed in Korea’s competitive shipbuilding environment. The company believes it can deliver ships in as little as two-thirds the time it takes a typical U.S. yard.

Domestically, Hanwha is also scaling up. By 2029, it aims to increase its shipyard capacity to build five submarines and three surface vessels simultaneously—up from its current capability of two each. Since 1987, the company has delivered 17 submarines to the South Korean Navy, but as demographic shifts reduce domestic defense demand, overseas markets are becoming more critical to future growth.

Hanwha is currently competing for contracts in Poland and Canada for submarines, in Thailand for a frigate, and exploring opportunities in the Middle East, Southeast Asia, South America, and North Africa. The goal: to build a diversified and sustainable international order book.

If successful, Hanwha’s global defense revenue would jump from 1.05 trillion won in 2024 to four times that by the end of the decade—a dramatic leap that could cement its status as a dominant player in naval shipbuilding.

Summary:

Hanwha Ocean is strategically expanding its global defense operations, focusing on U.S. Navy repair work and broader international markets. With growing political momentum behind U.S. shipbuilding and increasing demand for advanced naval vessels abroad, the company is positioning itself for long-term growth—despite regulatory challenges and a highly competitive global landscape.