South Korea’s Hanwha Group and its shipbuilding subsidiary have offered $100 million in a deal to purchase the historic Philly Shipyard from its current owner, Oslo-based Philly Shipyard ASA.
The announcement Thursday comes after several months of rumors that Hanwha and the shipyard’s Norwegian owners were exploring an acquisition of the shipyard, which constructs domestic cargo vessels and training ships for U.S. maritime colleges.
The transaction is pending U.S. regulatory approval, including a sign-off by the Committee on Foreign Investments in the U.S. Both parties expect the deal to be finalized by the end of the year.
A primary focus of the Philly Shipyard is building Jones Act ships, those that meet the requirement of the 1920 law mandating American-built and flagged vessels to move transport goods inside the U.S.
Navy Secretary Carlos Del Toro, in a statement, called the deal “a game-changing milestone in our new maritime statecraft.”
He added, “The Department of the Navy looks forward to collaborating with Hanwha Group in the future to ensure the continued strength of the American maritime industry. This will bring good paying union jobs to Philadelphia, a city with a 250-year relationship with the U.S. Navy.”
In 2024, Mr. Del Toro met with top shipbuilding executives in South Korea to encourage them to invest in commercial and naval shipbuilding facilities in the U.S.
“Investment in dual-use shipyards in the United States will create good-paying, blue-collar and new-collar American jobs building the advanced ships that will protect and power the economy of tomorrow,” Mr. Del Toro said.
• Mike Glenn can be reached at mglenn@washingtontimes.com.
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