TOTE Services selected Hanwha as the first shipbuilder under its Vessel Construction Manager contract for the Navy and Marine Corps’ LSM program. The award follows investments in the Philadelphia yard’s workforce and technology since Hanwha acquired it in 2024.
“Since acquiring Philly Shipyard in 2024, Hanwha has made significant investments in its workforce and technology to pave the way to build ships for the U.S. Navy and other federal customers,” said Michael Coulter, president and CEO of Hanwha Defense USA. “PAE (Portfolio Acquisition Executive) Maritime has made it clear this program is a priority for the U.S. Navy and Marine Corps, and Hanwha looks forward to working with TOTE Services to ensure an on-time and on-budget delivery.”
The shipyard brings experience with TOTE Services’ construction management approach, having built and delivered four National Security Multi-Mission Vessels under that model. Hanwha Defense USA personnel have been working at the yard since earlier this year to prepare it for naval construction.
“Since early this year, HDUSA personnel have been in Philadelphia working to ensure the shipyard is ready for naval work,” said Tim Glinatsis, Hanwha Defense USA’s senior vice president of program management. “Hanwha Philly Shipyard has already built and delivered four National Security Multi-Mission Vessels under the VCM model with TOTE Services, and we will leverage that experience to deliver the LSM to the U.S. Navy and Marine Corps.”
TOTE Services’ $2.2 billion VCM contract supports the Navy and Marine Corps’ planned fleet of 35 Medium Landing Ships. The program’s first vessel is expected to be delivered in 2030.
“This award shows the speed at which the VCM model can move from RFP to contract,” said Jeff Dixon, president of TOTE Services. “Through a competitive process, we secured strong terms that benefit the government, along with build positions that allow construction to start in the fourth quarter of 2027.”
The order also comes as Hanwha Defense USA moves to acquire a controlling stake in Hanwha Philly Shipyard. The company announced that transaction this week and said the acquisition process was underway.
