Hanwha Defense USA Wins $269M Contract to Build U.S. Navy LSM Medium Landing Ship.

The U.S. Navy and U.S. Marine Corps’ medium landing ship program is intended to move Marines, vehicles and supplies between dispersed coastal positions, supporting forces that must operate across island chains. A reported $269 million construction award to Hanwha Defense USA would bring Hanwha Philly Shipyard into the program while expanding the South Korean group’s role in the U.S. naval industrial base.

Hanwha Philly Shipyard in Philadelphia, the proposed construction site for the medium landing ship described in the reported contract.

According to information published by The Korea Times on October 31, 2026, Hanwha Defense USA, a subsidiary of South Korea’s Hanwha Aerospace, has secured a $269 million contract from TOTE Services to build one medium landing ship, with options for three additional vessels. Construction would begin at Hanwha Philly Shipyard in Philadelphia in the fourth quarter of 2027.

The report links the award to a planned 35-ship LSM fleet and a $2.2 billion vessel construction manager contract held by TOTE Services. It gives 2030 as the expected delivery year for the program’s first vessel, without explicitly identifying that ship as the one assigned to Hanwha.

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LSM Connects Sea Transport With Dispersed Coastal Operations

A medium landing ship is intended to transport military personnel, vehicles, equipment, and supplies between coastal locations, including landing points with limited port infrastructure. Its central purpose is to connect movement at sea with operations ashore, allowing a force to shift equipment and sustain troops without depending exclusively on established harbors.

The LSM concept fills a transport requirement between smaller landing craft and the Navy’s large amphibious warfare ships. Large amphibious ships provide substantial aviation, command, medical and troop support capabilities. Medium landing ships are intended to provide more numerous vessels focused on moving and sustaining smaller forces across shorter regional routes.

Shallow-water access and the ability to load or unload near the shoreline are central considerations for this mission. However, the supplied Hanwha report does not identify the selected design’s draft, payload, range, speed or unloading arrangements. Specific claims about beach access, vehicle capacity or endurance would therefore require confirmed design information.

U.S. Marines Need Mobility and Resupply Across Island Chains

The U.S. Marine Corps’ expeditionary advanced base concept envisages relatively small forces operating from dispersed coastal and island positions. Depending on their equipment and assignment, these forces could support maritime surveillance, sea denial, air defense or logistics missions.

Such formations need transport for vehicles, missile launchers, communications equipment, fuel, ammunition, and other supplies. Aircraft provide valuable mobility, but moving heavy equipment and sustaining repeated air deliveries can place substantial demands on available aviation resources. Surface transport offers another way to carry these loads.

Medium landing ships are intended to help Marines establish positions, replenish them and relocate as the operational situation changes. This mobility matters particularly across widely separated islands, where road networks cannot connect units and access to suitable ports may be limited.

Dispersion also creates a logistical challenge: smaller units spread across more locations require reliable deliveries to remain effective. The military value of an LSM fleet would therefore depend on the wider support system, including supply stocks, maintenance, communications, loading facilities and coordination with other naval forces.

U.S. Navy Must Balance Coastal Access With Survivability

For the Navy, medium landing ships would add transport capacity tailored to supporting Marine operations from the sea. More available vessels could give commanders more options for distributing cargo and scheduling movements, while allowing larger amphibious ships to focus on missions that require their broader capabilities.

Operating close to shore also exposes ships to surveillance, mines, missiles, drones, and other threats. A medium landing ship should not be assumed to possess the defensive capability of a major surface combatant. Its employment would require planning around threat conditions, route selection, protection and the timing of movements.

The operational requirement therefore involves balancing useful payload, access to coastal landing points, affordability, and survivability. A ship that can reach an austere location still needs a practical way to unload, support its embarked force and leave within an acceptable level of risk.

Hanwha Offers a Route to Shipyard Investment Inside the United States

U.S. interest in South Korean shipbuilding reflects the industry’s experience in large-scale vessel construction, production planning, supplier coordination and shipyard technology. These capabilities are relevant to American efforts to expand shipbuilding output and address pressure on construction schedules and industrial capacity.

Hanwha’s Philadelphia investment offers a route for applying that experience within a U.S. shipyard. Under the arrangement described in the supplied report, the LSM would be built in Pennsylvania. The industrial contribution would come through ownership, capital investment, production methods, and workforce development at the American facility.

According to The Korea Times, Hanwha acquired Philly Shipyard in 2024 and subsequently invested in its workforce and technology. HDUSA is also seeking a controlling stake in the yard, although that transaction should be treated separately from the reported construction award.

The broader rationale is to combine American shipyard capacity and workers with investment and manufacturing experience from an allied shipbuilding industry. Whether this produces faster or more economical naval construction will depend on execution: adapting production processes to military requirements, qualifying suppliers, training personnel, and meeting inspection and acceptance standards. The reported award alone does not establish those outcomes, but it would provide a concrete test of Hanwha’s ability to contribute to U.S. naval shipbuilding.

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Written by Alain Servaes – Chief Editor, Army Recognition Group
Alain Servaes is a former infantry non-commissioned officer and the founder of Army Recognition. With over 20 years in defense journalism, he provides expert analysis on military equipment, NATO operations, and the global defense industry.