Hanwha Philly Shipyard Wins $269 Million Landing Ship Medium Award From TOTE

Hanwha Defense USA has been selected to build a Landing Ship Medium for the US Navy and Marine Corps at Hanwha Philly Shipyard, a $269 million award that includes options for up to three more vessels. TOTE Services announced the selection on October 30, 2026. It is the first shipyard pick made under the Navy’s new vessel construction manager model.

The award is also Hanwha Defense USA’s first US Navy contract. Construction is set to begin in the fourth quarter of 2027, with first delivery now expected in 2030.

TOTE Selects Hanwha for LSM Construction

Jeff Dixon, president of TOTE Services, said the award “shows the speed at which the VCM model can move from RFP to contract.” He said the available build positions allow construction to start in the fourth quarter of 2027.

Michael Coulter, president and CEO of Hanwha Defense USA, said Hanwha has invested in its workforce and technology since acquiring the yard. He said the Navy’s Portfolio Acquisition Executive for Maritime has called the programme “a priority for the U.S. Navy and Marine Corps.”

How the Vessel Construction Manager Model Works

The vessel construction manager approach is common in commercial shipbuilding but new to Navy shipbuilding. In July, the Navy named TOTE as its first VCM under a $2.2 billion contract. Per the Navy, the VCM is the prime contractor, with direct contractual oversight of construction and delivery, and the aim is to “maximize commercial practices to accelerate delivery.”

TOTE also serves as VCM for the National Security Multi-Mission Vessel programme for the US Maritime Administration. Hanwha is building those ships as well.

Three Yards Share the LSM Programme

Hanwha is not the only yard working on the Landing Ship Medium. The Navy earlier selected Bollinger Shipyards to build the initial vessel and gave Fincantieri Marinette Marine a long-lead materials contract for four more. TOTE said it is in “productive contract discussions” with both and expects them to play a “meaningful role” in building the fleet.

What the Landing Ship Medium Is For

In December 2025 the Navy and Marine Corps said the LSM design is derived from a ship design by Dutch shipbuilder Damen. The vessel is intended to move Marines and their equipment through Indo-Pacific island chains.

The schedule has slipped slightly. The Navy said in July that the first LSM was slated for delivery in 2029, while TOTE now expects first delivery in 2030. The reporting does not explain the difference.

Hanwha Philly Shipyard Moves Under US Leadership

Hanwha bought Philly Shipyard in December 2024. According to a news release issued this week, Hanwha Systems holds 60 percent and Hanwha Ocean holds 40 percent. Hanwha Defense USA plans to acquire a controlling stake, after which the yard will operate under its leadership. The release did not give the percentage.

Retired US Navy Rear Adm. Tom Anderson will oversee the shipyard. Coulter said bringing the yard under Hanwha Defense USA will “further align” government and commercial shipbuilding efforts.

Hanwha Ocean Company Profile

Landing Ship Medium and Hanwha FAQ

What is the Landing Ship Medium?

A Navy and Marine Corps vessel, derived from a Damen design, meant to move Marines and equipment through Indo-Pacific island chains.

How much is the Hanwha LSM award worth?

$269 million for one vessel, with options for up to three more.

Who selected Hanwha?

TOTE Services, which the Navy named in July as its first vessel construction manager under a $2.2 billion contract.

When will the first Hanwha-built LSM be delivered?

TOTE expects first delivery in 2030. Construction is due to start in the fourth quarter of 2027.

Is this Hanwha’s first US Navy contract?

Yes. Breaking Defense describes it as Hanwha Defense USA’s first US Navy contract.