# Hanwha Ocean installs smart yard systems at Philly Shipyard
*The Korean shipbuilder plans to launch enterprise resource planning in November 2026, targeting U.S. Navy vessel repair work as yard staffing reaches 2,500 workers.*
**Published:** October 22, 2026
**By:** Hyun-jung Lee
**Section:** Shipbuilding & Defense — South Korea
**Format:** Company Watch
**Confidence:** medium
**Source:** https://eastasiabrief.com/shipbuilding/hanwha-ocean-installs-smart-yard-systems-philly-shipyard-866
**Publisher:** East Asia Brief (https://eastasiabrief.com/)
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## What to know
- Hanwha Ocean schedules Philly Shipyard digital ERP rollout for Nov. 15, 2026
- Acquisition doubled yard workforce to 2,500 under a $5 billion capacity plan
- Commercial build costs remain roughly double Asian yard benchmarks
*Shipyard workers review digital blueprints at an outdoor control station as a large vessel is assembled under a gantry crane. (AI-generated image)*
Hanwha Ocean advanced the transfer of its Geoje smart yard automation technologies to Philly Shipyard on Oct. 21, 2026, preparing for a November software rollout.
The company acquired the Pennsylvania facility alongside affiliate Hanwha Systems for $100 million in December 2024. That transaction represented South Korea's first direct purchase of an operational American shipbuilding site.
Philly Shipyard now employs roughly 2,500 workers, doubling its head count since the acquisition. Hanwha Group subsequently announced a $5 billion investment program to expand annual construction capacity tenfold from two vessels to 20.
The technology transfer centers on installing digital production management systems developed at Hanwha Ocean's main yard in Geoje. South Korea's major shipyards rely on high-throughput automation to offset regional labor shortages and maintain vessel delivery schedules.
Engineers began developing custom enterprise resource planning software for the Philadelphia yard in November 2025. The program moved into full development in March 2026 and faces a targeted launch date this November.
The software replaces paper workflows and chalk notations on raw steel with digital tracking tags. Workers previously marked steel plates by hand, which contributed to assembly errors and inventory misplacement during hull fabrication.
Under the incoming system, each steel component receives a unique digital code at intake. Automated cutting and bending machinery reads the code directly, matching raw materials to specific engineering schematics without manual measurement.
Hanwha Ocean also deploys autonomous drones and fixed sensors across the Philadelphia yard. The devices track block movements and update assembly schedules inside the central monitoring software every 30 minutes.
Commercial vessels require hundreds of pre-assembled steel blocks that fit together inside dry docks. A delay in moving a single block can halt assembly lines and cause downstream schedule overruns.
The tracking network allows managers to view yard inventory remotely and identify bottlenecks before assembly crews arrive. Geoje engineers have tested the monitoring layout across three decades of high-volume container and gas carrier construction.
Automated welding hardware forms the second phase of the yard modernization effort. Hanwha Ocean plans to deploy portable welding robots tested in Geoje to Philadelphia before the end of 2026.
At the Geoje yard, automated equipment performs 67% of indoor steel welding operations. The shipbuilder aims to raise that proportion to 100% by 2030 to counter an aging domestic workforce.
The portable units weigh roughly 17 kilograms and work inside confined hull compartments. Human welders face high physical strain in those spaces, where heat and toxic fumes present chronic safety hazards.
In Philadelphia, robotic welders will join flat steel plates and stiffeners during early hull fabrication. The deployment seeks to lift fabrication speed while maintaining uniform seam quality on structural bulkheads.
The United States faces a structural deficit of certified maritime welders and pipefitters. Decades of commercial shipbuilding decline eroded domestic training pipelines, leaving coastal yards reliant on an aging trade cohort.
Hanwha Ocean signed a workforce development pact with Delaware County Community College in July 2026. The program trains local technicians to operate robotic tooling and inspect automated weld lines alongside Korean instructors.
The modernization push directly targets upcoming maintenance, repair and overhaul contracts for the U.S. Navy. American naval shipyards face multi-year repair backlogs on surface combatants and auxiliary sealift ships.
Federal law requires vessels built for domestic commerce or defense to meet strict domestic construction mandates. Operating inside an established American facility allows Hanwha Ocean to bypass Jones Act barriers and bid on naval fleet support.
Philly Shipyard is located near major naval installations along the Atlantic coast, reducing transit times for fleet auxiliary vessels. The yard previously built commercial tankers and training vessels for the U.S. Maritime Administration.
U.S. Senator Dave McCormick visited the Geoje facility on Oct. 7, 2026, to review smart yard technology. The Pennsylvania lawmaker inspected naval frigate construction lines and discussed integrating Korean production methods into the Philadelphia yard.
Hanwha Ocean also partnered with defense contractor Leidos in July 2026 to design fast sealift ships. That joint design effort relies on manufacturing procedures that match Philly Shipyard's planned digital workflows.
Cost pressures remain an operational obstacle for the Philadelphia operation. Commercial ships constructed in American yards cost roughly double what South Korean or Chinese yards charge for comparable hulls.
The yard's commercial order backlog remains thin outside three container vessels ordered by Matson before the buyout. Hanwha Shipping has placed orders for oil and gas carriers, but external commercial contracts have not materialized.
Deploying automated systems aims to narrow that labor cost premium over time. Company officials expect digital planning to reduce rework and cut overall assembly hours on complex hull sections.
Full enterprise resource planning integration begins when the software platform goes live on Nov. 15, 2026. The initial robotic welding units will undergo field calibration in dry dock facilities during the same month.
The company has not disclosed the capital expenditure figure allocated specifically to the smart yard retrofit. Hanwha Ocean has also not published delivery dates for secondary painting and cable-laying robotic systems.
Philly Shipyard continues fabrication work on its current backlog while engineers install sensor hardware across fabrication bays.
## Impact map
| Event | Korea | China | Japan | Global impact |
| --- | --- | --- | --- | --- |
| Smart yard technology transfer | Hanwha Ocean exports proprietary yard software and robotic welding units | Shipbuilders face no direct impact, shielded by domestic dual-use naval yards | Mitsubishi Heavy and Imabari retain domestic defense contracts, untouched by U.S. yard revamp | U.S. Navy auxiliary MRO capacity gains Korean modular production technology |
## In this story
- **Companies:** Hanwha Ocean, Philly Shipyard
- **Tickers:** 042660.KS
- **Exposed:** Hanwha Systems, Leidos
- **Policy:** Local Content Rules, Procurement Rules
- **Impact:** Capex, Supply Chain, Order Book
## Primary sources
1. hanwhaocean.com
2. insightkorea.co.kr
3. haesanews.com
4. newstomato.com
5. news1.kr
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Cite as: East Asia Brief, "Hanwha Ocean installs smart yard systems at Philly Shipyard," October 22, 2026. https://eastasiabrief.com/shipbuilding/hanwha-ocean-installs-smart-yard-systems-philly-shipyard-866