Hanwha Philly Shipyard Selected to Build US Navy Medium Landing Ship (LSM)
The $269 million contract adds a second production line for the Navy’s 35-ship fleet and is expected to speed delivery, TOTE Services said.
- On October 30, TOTE Services selected Hanwha Defense USA to build the U.S. Navy's first Medium Landing Ship at Hanwha Philly Shipyard in a $269 million deal, marking the first shipyard award under TOTE Services' Vessel Construction Manager program.
- TOTE Services' $2.2 billion VCM contract supports the Navy and Marine Corps' planned 35-ship LSM fleet. The VCM model, common in commercial shipbuilding, represents a new acquisition approach for Navy shipbuilding.
- Following a competitive bidding process initiated in July 2026, construction of the first LSM is scheduled to begin in the fourth quarter of 2027, with delivery expected in 2030. HDUSA won based on competitive pricing and acceptance of TOTE Services' subcontract terms.
- HDUSA is acquiring a controlling stake in Hanwha Philly Shipyard, aligning government and commercial shipbuilding efforts. Since acquiring the shipyard in 2024, Hanwha has invested in workforce and technology to support Navy contracts.
- TOTE Services continues "productive contract discussions" with Bollinger Shipyards and Fincantieri Marinette Marine, both expected to play "meaningful roles" in the LSM program. Distributing construction across multiple shipyards helps the Navy manage costs and avoid capacity bottlenecks.
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Hanwha signs $269 million shipbuilding contract for US Navy - Regional Media News
SEOUL, Nov 1 (Reuters) - Hanwha Defense USA said on Sunday it had signed a $269 million contract with Tote Services to build a medium landing ship for US Navy. The 2,687-ton, 100-metre vessel is to be used for operations in disputed waters including the [...]
Hanwha has secured a contract to build U.S. Navy Landing Ship Medium (LSM) vessels for the first time, two years after acquiring the Philly Shipyard in Philadelphia. Securing a stable volume of orders from the U.S. military was identified as a key challenge given high local labor costs, supply chain shortages, and limited facility capacity, and this marks the first step toward achieving that goal. Recently
Hanwha signs $269 million shipbuilding contract for US Navy
SEOUL, Nov 1 (Reuters) - Hanwha Defense USA said on Sunday it had signed a $269 million contract with Tote Services to build a medium landing ship for US Navy. The 2,687-ton, 100-metre vessel is to be used for operations in disputed waters inc...
South Korean Group Wins Its First US Navy Medium Landing Ship Contract After Buying A Philadelphia Shipyard In 2024
TOTE Services, LLC, a leading U.S. maritime services company specializing in vessel construction management and ship management announced its first shipyard selection for the Medium Landing Ship (LSM) program under TOTE Services' Vessel Construction Manager (VCM) contract for the U.S. Navy and Marine Corps.
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