U.S. President Donald Trump has announced plans to spend $1.5 billion on the construction of large national security vessels at Hanwha Philly Shipyard in Philadelphia.
Trump outlined the plan during the Defense and Innovation Conference in Pennsylvania, where he also announced an additional $10 billion in defense investment. He said total defense-related investment in the state was expected to reach between $19 billion and $20 billion.
The president said several ships would be built at the Philadelphia yard as part of efforts to expand U.S. naval capacity.
U.S. Senator Dave McCormick said Hanwha Philly Shipyard had received a new order connected to the U.S. Maritime Administration. His office said the project was valued at $1.5 billion and was expected to create more than 2,000 jobs.
Separately, Rhodes Industries and other parties signed a 10-year strategic agreement valued at $2.5 billion to support U.S. Navy submarine construction at the Philadelphia Naval Shipyard.
JPMorgan Chase also plans to provide about $25 million to support Philadelphia’s shipbuilding and maritime industries.
Trump said the United States was considering purchasing ships from companies in South Korea and other regions. He said additional vessels were needed for the U.S. Navy and described the existing fleet as ageing.
He also said U.S. shipbuilding capacity had declined and that many shipyards had been sold for real estate development.
South Korea and the United States have agreed that $150 billion of a wider $350 billion U.S. investment package will be directed to shipbuilding cooperation. A Korea-U.S. Shipbuilding Cooperation Center is also scheduled to open in Washington, D.C.
Michael Coulter, chief executive of Hanwha Defense USA, attended the conference with U.S. Defense Secretary Pete Hegseth, JPMorgan Chase chief executive Jamie Dimon and executives from Lockheed Martin and Boeing.
Dimon said he had visited Hanwha Philly Shipyard earlier in the day. He said shipbuilding activities involving Hanwha and Rhodes Industries were expected to create between 400 and 500 jobs, as well as a further 5,000 jobs among suppliers and contractors.
Coulter said South Korean shipyards build about one ship per week and that Hanwha plans to bring that capability to Philadelphia.
