South Korea’s Hanwha Ocean has appointed retired Rear Admiral Thomas J. Anderson—former Program Executive Officer for Ships (PEO Ships) at the U.S. Navy—as the inaugural CEO of its newly formed U.S. shipbuilding subsidiary. The move signals a bold expansion of Hanwha’s ambitions in the American naval industrial base amid growing demand for next-generation surface combatants and submarine support capabilities.
Strategic Appointment Targets U.S. Naval Market Entry
Tom Anderson brings over 35 years of naval acquisition and shipbuilding experience to Hanwha’s new American venture. As head of PEO Ships from 2020 until his retirement in 2023, he oversaw more than $40 billion annually in acquisition programs covering amphibious ships, destroyers, auxiliaries, and unmanned surface vessels (USVs). His tenure included key milestones such as the awarding of contracts for the Constellation-class frigate (FFG-62), LPD Flight II ships, and early groundwork on DDG(X).
Hanwha Ocean—formerly Daewoo Shipbuilding & Marine Engineering (DSME)—was acquired by Hanwha Group in 2023 and has since rebranded with a focus on both domestic and international defense markets. The company is now positioning itself as a potential player in future U.S. Navy programs such as DDG(X), Columbia-class submarine module production support, and auxiliary fleet modernization.
“Tom’s appointment reflects our long-term commitment to contributing to the U.S. Navy’s evolving needs,” said a Hanwha spokesperson in a statement reviewed by MiliVox. “His leadership will be critical as we align our advanced shipyard capabilities with American requirements.”
Hanwha’s Naval Ambitions Extend Beyond Korea
Hanwha Ocean is already one of South Korea’s top naval shipbuilders alongside Hyundai Heavy Industries (HHI), producing platforms such as KDX destroyers and KSS submarines for the Republic of Korea Navy (ROKN). The firm also builds commercial vessels but has increasingly pivoted toward military exports under government-backed initiatives.
In recent years, Hanwha has expanded its global defense footprint through strategic acquisitions and partnerships:
- Acquisition of DSME: Completed in 2023 for approximately $1.5 billion; rebranded as Hanwha Ocean.
- Australian Submarine Bid: Part of Teaming arrangements for Australia’s Attack-class replacement before AUKUS pivoted toward SSN-AUKUS.
- KDX Export Variants: Offers export versions of its Aegis-capable destroyers with integrated Korean Combat Management Systems (CMS).
The establishment of a dedicated U.S.-based entity—likely registered as a Foreign-Owned but Operated Company (FOBOC) under ITAR compliance—demonstrates intent to localize production or co-produce systems with American partners.
Navigating Buy American Laws and Security Concerns
The path into the highly protected U.S. naval industrial base is fraught with regulatory hurdles—including Buy American Act provisions, DFARS restrictions on foreign content in sensitive systems, and Committee on Foreign Investment in the United States (CFIUS) scrutiny.
However, there are precedents that suggest opportunity:
- Austal USA: An Australian-owned company operating a major shipyard in Mobile, Alabama; builder of EPF and LCS ships for the U.S. Navy.
- Babcock International: UK-based firm involved in nuclear submarine maintenance via joint ventures with General Dynamics Electric Boat.
If structured correctly—with sufficient localization of workforce, supply chain integration, and cybersecurity safeguards—Hanwha could feasibly participate as a subcontractor or even prime builder on select auxiliary or modular components programs.
Pursuing Roles in DDG(X) and Columbia-Class Supply Chains
The timing of this move coincides with two major upcoming procurement efforts by the U.S. Navy:
DDG(X): Next-Generation Surface Combatant
This program aims to replace Arleigh Burke-class destroyers starting around FY2030s with larger hulls capable of integrating high-energy weapons (HEL), advanced sensors like SPY-6 variants or follow-ons, integrated power systems (IPS), and greater missile capacity via VLS evolution or new launch architectures.
The Congressional Budget Office estimates unit costs between $3–4 billion per hull depending on configuration—a lucrative opportunity for any qualified supplier able to deliver modules or systems integration expertise at scale.
Columbia-Class Submarine Industrial Support
The Columbia-class SSBN program is under acute schedule pressure due to its strategic deterrent role replacing Ohio-class boats starting FY2031. General Dynamics Electric Boat leads construction but faces capacity constraints across suppliers—from steel fabrication to outfitting modules.
If Hanwha can demonstrate nuclear-grade manufacturing standards aligned with NAVSEA SUBSAFE protocols—and secure necessary security clearances—it may be positioned as an overflow supplier or partner on non-reactor modules like crew quarters or sonar domes.
A Broader Korean Push into Allied Defense Ecosystems
This move aligns with broader trends among South Korean defense conglomerates seeking footholds within NATO-aligned countries’ supply chains:
- KAI & LIG Nex1: Expanding presence through FA-50 exports to Poland & Malaysia; offering guided munitions co-development deals across Europe.
- Hyundai Rotem & Hanwha Defense: Local joint ventures established in Poland under PGZ umbrella for K9 SPH/K239 MLRS production post-Russo-Ukrainian war surge demand.
- Korean Government Policy Support: Export credit guarantees via KEXIM Bank; ROK MoD diplomatic backing during bilateral defense dialogues including ROK-US DTT meetings.
If successful in penetrating even niche segments of the U.S. naval market via modular construction or auxiliary vessel roles—especially amid strained domestic yard capacity—Hanwha could set precedent for other Asian OEMs looking westward post-COVID supply chain realignments.
Outlook: Challenges Remain Despite Strategic Talent Acquisition
The appointment of Tom Anderson provides credibility—but not certainty—for Hanwha’s ambitions within America’s tightly controlled naval procurement ecosystem. Key challenges include:
- Sensitive Technology Transfer Limits: Even if cleared for participation at lower tiers, access to classified design data remains restricted without deep partnerships with Tier-1 primes like HII or GD NASSCO/EB.
- Cultural & Programmatic Integration Risks: Aligning Korean engineering practices with NAVSEA specifications requires significant adaptation—not just translation but doctrinal alignment across QA/QC regimes like ISO/NAVSEA Tech Warrant Holder processes.
- Bipartisan Political Scrutiny Over Foreign Ownership: Especially amid rising tensions over Chinese influence operations globally—even allied firms face heightened oversight during CFIUS reviews if national security equities are invoked by DoD stakeholders or Congress members on Armed Services Committees.
If navigated successfully—with transparency and genuine industrial investment—Anderson’s leadership may open doors not only for Hanwha but also redefine how allied nations contribute directly inside America’s defense manufacturing base rather than just exporting platforms abroad.
