Mallory Shelbourne – October 30, 2026 9:45 AM
Hanwha Philly Shipyard has won a $269 million contract to build the Marine Corps’ Landing Ship Medium, according to a Friday announcement from the program’s vessel construction manager.
TOTE Services, which won a $2.2 billion contract in July to function as the LSM vessel construction manager, awarded Hanwha the contract after putting out a request for proposals in July.
“Hanwha Defense USA (HDUSA) is the first shipbuilder selected through that process, based on its competitive pricing and acceptance of TOTE Services’ subcontract terms and conditions,” reads a TOTE news release. “The award covers construction of one LSM, valued at $269 million, at Hanwha Philly Shipyard (HPSI), with options for three additional vessels.”
Gulf Coast-based Bollinger Shipyards is already on contract to build the first LSM. Fincantieri Marinette Marine out of Wisconsin won a contract earlier this year for long lead items for four ships.
TOTE’s LSM contract is for as many as eight ships, according to the company.
“TOTE Services continues productive contract discussions with Bollinger Shipyards and Fincantieri Marinette Marine, both directed shipyards under the VCM contract, which are expected to play a meaningful role in building the LSM fleet,” reads the release.
This is the first time the Navy has opted to use a vessel construction manager, which runs the program on behalf of the service.
The LSM program has faced years of requirements churn as the Navy and Marine Corps debated the ship’s design and survivability. The platform is a crucial component of the Marine Corps’ current strategy for countering China in the Western Pacific, where smaller units of Marines would move around between islands and shorelines to set up ad-hoc bases from which they could fire anti-ship missiles.
The LSM is based on the Damen LST-100 concept, an export-oriented tank landing ship design currently in service with the Nigerian Navy and also planned for the Royal Australian Navy. The Navy bought the design package for $17 million, USNI News previously reported.
TOTE is already managing another program under construction at Hanwha Philly Shipyard – the U.S. Maritime Administration’s National Security Multi-Mission Vessel.
Last year, the White House announced the outlines of a trade deal with South Korea following President Donald Trump’s visit to the country. That deal included a pledge from South Korea to put $150 billion into American shipbuilding.
Mallory Shelbourne
Mallory Shelbourne is a reporter for USNI News. She previously covered the Navy for Inside Defense and reported on politics for The Hill.
Follow @MalShelbourne
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