Full Breakdown
Hanwha Philly Shipyard Wins First U.S. Navy Medium Landing Ship Contract
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In this breakdown
01
Core Event
On October 31 2026, TOTE Services announced that Hanwha Defense USA (HDUSA) has been awarded a $269 million contract to build one Medium Landing Ship (LSM) for the U.S. Navy and Marine Corps at the Hanwha Philly Shipyard in Philadelphia, Pennsylvania. The award includes options for three additional vessels and is HDUSA’s first U.S. Navy shipbuilding contract. Construction is slated to begin in Q4 2027, with the initial ship expected in 2030.
02
Background & Context
The LSM program is part of a broader effort to field a fleet of 35 medium-landing ships—designated the McClung-class—for Expeditionary Advanced Base Operations in the Indo-Pacific. The design derives from the Dutch Damen LST 100 platform, a ~4,000-tonne, 100-meter vessel capable of shallow-draft beaching via bow doors and a stern flight deck for rotary-wing and VTOL aircraft.
TOTE Services serves as the Vessel Construction Manager (VCM) under a $2.2 billion contract that delegates shipyard selection and construction oversight to a specialist firm rather than the Navy contracting directly with yards. The VCM model was first used for the National Security Multi-Mission Vessel (NSMV) program, where the same shipyard delivered four training ships.
Visual evidence
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03
Data & Statistics
- Contract value: $269 million (? 360 billion won)
- Options: up to three additional LSMs
- Fleet goal: 35 LSMs
- Dimensions: ? 100 m length, 16 m beam, 2,678 t displacement
- Payload: 500–800 t (? 250 marines)
- Range: ? 7,400 km (? 3,400 nm)
- Speed: 15 knots sustained
- Construction start: Q4 2027
- First-ship delivery: 2030 (per TOTE)
04
Official Statements & Responses
HDUSA President Michael Coulter said investments made since acquiring the shipyard in 2024 have prepared the facility for naval work. Tim Glinatsis, senior vice president of program management at HDUSA, noted the shipyard’s experience delivering four NSMVs under the VCM model will be leveraged for the LSM. George Moutafis, CEO of Fincantieri Marine Group, stressed the need for clear requirements, a realistic schedule, and executable agreements.
05
Conflicting Reports & Gaps
Two sources differ on the expected delivery year of the first LSM. A July 2026 Navy briefing indicated a 2029 delivery target, whereas TOTE’s October 2026 announcement states delivery is now expected in 2030. No clarification has been provided.
06
Verbatim Quotes
- “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,” — HDUSA President
- “This award shows the speed at which the VCM model can move from RFP to contract,” — Jeff Dixon, TOTE president
07
What’s Next
The VCM contract foresees up to eight LSMs built across multiple commercial-standard shipyards, including Hanwha Philly Shipyard, Fincantieri Marinette Marine, and Bollinger Shipyards. Options for three additional vessels will be exercised based on performance and budget. The Navy and Marine Corps will continue to refine requirements and monitor construction progress toward the 2030 milestone.