Hanwha Defense USA Wins $269 Million Navy Ship Deal
The firm secured a contract to build a Medium Landing Ship at its Philadelphia shipyard.
Updated on Oct. 31, 2026 in Military
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Hanwha Defense USA has been awarded a $269 million contract to construct a new Medium Landing Ship for the U.S. Navy and Marine Corps. The vessel will be named in honor of Maj. Megan McClung, the first female Marine officer killed in the Iraq War.
Why it matters
This construction effort represents a significant step in the U.S. Navy and Marine Corps initiative to rebuild domestic shipbuilding capabilities. The program aims to eventually deliver a fleet of 35 ships capable of navigating shallow waters to reach remote beaches.
The contract is valued at $269 million and includes options for the construction of three additional vessels. These ships are part of a larger 35-ship program designed for shallow-water access.
The players
Hanwha Defense USA
This subsidiary of the South Korean defense conglomerate is leading the shipyard's transition into a dual-use facility.
Maj. Megan McClung
She was a Marine officer who became the first female Marine to be killed in the Iraq War in 2006.
TOTE Services
This marine transportation and logistics company manages the procurement and contract negotiations for the vessel program.
The details
Hanwha Defense USA, which previously acquired a 40% interest in the local Philadelphia shipyard in 2024, is now transitioning the site into a dual-use operation through workforce and infrastructure investments. While this contract is finalized, TOTE Services is concurrently negotiating with other shipbuilders for additional vessels.
Timeline
Maj. Megan McClung was killed in action in 2006.
Hanwha Defense USA acquired a 40% interest in the shipyard in 2024.
TOTE Services announced the contract award on October 30, 2026.
Construction of the vessel is slated to begin in late 2027.
The first ship is expected for delivery in 2030.
Political Context
This investment follows the mandates of the U.S. National Shipbuilding Strategy, which seeks to revitalize domestic industrial capacity. Opposition members and industry analysts often push back on the timeline for delivery, questioning if current shipyard capacity can support a 35-ship fleet.
The transition of the local shipyard into a dual-use operation is expected to boost employment and infrastructure investment in Philadelphia. Residents may see long-term industrial growth as the facility scales its workforce to meet the multi-year construction requirements.
The takeaway
The move to build these landing ships highlights the military's strategic pivot toward vessels capable of reaching remote, shallow-water locations. Strengthening local industrial hubs is considered essential to meeting the long-term logistical demands of the 35-ship fleet program.
Further reading
For more information on ongoing defense initiatives, see the Military section.
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