Hanwha Defense USA selected for LSM contract
Hanwha Defense USA (HDUSA) has announced its selection for a $2.2 billion contract awarded by TOTE Services to support the U.S. Navy and Marine Corps in building a fleet of 35 Logistics Support Vessels (LSM). The first vessel from this program is projected for delivery in 2030.
Michael Coulter, President & CEO of HDUSA, stated, “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. PAE Maritime has made it clear this program is a priority, and we look forward to collaborating with TOTE Services to ensure timely and budget-conscious delivery.”
Jeff Dixon, President of TOTE Services, emphasized the efficiency of the Vessel Construction Manager (VCM) model, saying, “This award shows the speed at which the VCM model can move from RFP to contract. 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. We appreciate PAE Maritime’s commitment to the VCM acquisition model and commend Navy leadership for rethinking ship delivery to the fleet. PAE Maritime has challenged the status quo and is removing longstanding barriers to execution, enabling critical capabilities to be delivered faster and more efficiently.”
Tim Glinatsis, Senior Vice President of Program Management at HDUSA, noted, “Since early this year, our personnel have been in Philadelphia ensuring the shipyard is prepared for naval work. Hanwha Philly Shipyard has already built and delivered four National Security Multi-Mission Vessels under the VCM model with TOTE Services, and we will leverage that experience to deliver the LSM to the U.S. Navy and Marine Corps.”
Additionally, HDUSA has begun acquiring a controlling stake in Hanwha Philly Shipyard, further reinforcing its commitment to enhancing shipbuilding capabilities.
About Hanwha Defense USA
A subsidiary of Hanwha Aerospace, Hanwha Defense USA excels in delivering proven platforms backed by a demonstrated process maturity across global markets. The company is dedicated to developing local workforces and sustaining product life cycles to meet the needs of warfighters and industrial partners, while continuing to expand its footprint in the U.S. through organic growth, strategic partnerships, and selective acquisitions.
About Hanwha Philly Shipyard
Hanwha Philly Shipyard (HPSI) stands as a leading U.S. shipbuilder, known for its advanced shipbuilding facility and a reputation for quality. The shipyard has delivered approximately 50% of all large ocean-going U.S. Jones Act commercial ships since 2000 and is part of the multinational Hanwha Group, which operates in defense, aerospace, energy, finance, and technology sectors.
For more information, visit: www.hanwhadefenseusa.com
For more about Hanwha Philly Shipyard, visit: www.hanwhaphillyshipyard.com
