Hanwha Defense USA, operating out of the Philadelphia Shipyard, has been selected by TOTE Services to build the U.S. Navy’s first Medium Landing Ship under a $269 million contract, with options for three additional vessels. The deal marks the first U.S. Navy warship construction contract for Hanwha since it acquired the Philadelphia yard in 2024.
TOTE Services, a leading U.S. maritime services company, chose Hanwha after issuing a competitive request for proposals to qualified U.S. shipyards. Hanwha is the first shipbuilding selected through the process, based on its competitive pricing and acceptance of TOTE Services subcontract terms and conditions. The award covers the construction of one Medium Landing Ship (LSM) with the option for three additional vessels, under TOTE Services’ Vessel Construction Manager (VCM) contract for the U.S. Navy and Marine Corps.
“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 program will include up to eight new vessels under the base contract, officials said. TOTE Services continues contract discussions with Bollinger Shipyards and Fincantieri Marinette Marine, both directed shipyards under the VCM contract.
“TOTE Service’s selection of Hanwha Defense USA and Hanwha Philly Shipyard for the LSM program is a testament to the skilled union workforce, transformational investments, and experienced partnerships that make Philadelphia one of the nation’s premier shipbuilding centers,” U.S. Rep. Mary Gay Scanlon (D-PA) said. “This selection is a significant step forward for the Hanwha Philly Shipyard as it supports Navy and Marine Corps efforts to rebuild U.S. shipbuilding.”