Philly Shipyard Expansion Faces Immigration Hurdles and Visa Barriers

(PHILADELPHIA, PENNSYLVANIA) Philadelphia’s $5 billion shipyard expansion, led by Hanwha Group, is suddenly facing rough seas after a wave of U.S. immigration enforcement actions and ongoing visa bottlenecks raised doubts about whether the skilled foreign workers needed for the project can arrive on time.

The plan aims to transform Philly Shipyard with two new docks, three quays, and possibly a block assembly facility, pushing output from fewer than two vessels a year to as many as 20. But without steady visa access for Korean engineers and technicians who drive the advanced systems Hanwha wants to install, the schedule—and thousands of promised jobs—now looks uncertain.

Project model and workforce needs

Announced in August 2025, Hanwha’s investment is designed around a blended model: Korean technical leadership paired with American labor and infrastructure in the United States 🇺🇸. The company’s approach relies on specialists who can deploy automation and smart-yard systems, train local teams, and set up production lines at pace.

Officials have touted at least 5,000 direct skilled jobs, with many more to follow indirectly as suppliers and service firms ramp up around the yard. Yet the pool of U.S. workers ready to fill these roles today is thin. Industry data points to a broader shortage, with nearly 400,000 factory jobs unfilled nationwide as of June 2025.

The enforcement shock that changed calculations

The immediate shock came in September 2025, when U.S. Immigration and Customs Enforcement carried out a major operation at a Hyundai plant in Georgia, detaining 475 workers. According to information provided, more than 300 were South Korean nationals on assignment at the facility, and most were deported within weeks.

That incident rattled Korean executives, fueled diplomatic concerns, and triggered a rapid shift in how companies plan worker travel. Many firms paused short-term trips on common visa categories and began insisting on the more complex L-1 route for longer stays, even as they warned of cost increases of at least 10%, and in some cases up to 30%.

This crackdown is now a real worry in Philadelphia. Hanwha Group and its partners must move experienced specialists in and out as the yard builds new capacity. Without them, the timeline to stand up new lines, debug systems, and certify vessels will slip.

“Visa reliability is the key threat to execution,” according to VisaVerge.com, which reports Korean shipbuilders and their U.S. partners see immigration uncertainty as the primary risk to projects.

Policy pressure and a tightening labor market

The policy backdrop adds more complexity. President Trump and senior officials have said foreign companies must hire and train U.S. workers while following immigration laws. Industry executives counter that training takes time and that transferring know-how from Korean yards is essential in the near term.

Bipartisan voices in Congress have pushed for targeted immigration steps—such as a special quota for allied technical specialists—arguing that the country risks undercutting its own industrial policy if it cannot bring in the experts needed to launch projects at speed.

A dedicated visa solution has not materialized. The current H-1B allotment for South Koreans stands at 3,500 per year, far below demand, and the proposed “Partner with Korea Act,” which would raise the ceiling to 15,000, had not advanced as of October 2025. Companies say that leaves few dependable options for the specific skills required to expand Philly Shipyard’s output to 20 ships annually.

Some firms are pivoting to L-1 intracompany transfers for managers and specialized knowledge workers; others are exploring a mix of short-term business visits and training plans. But after the September enforcement action, legal teams are urging caution, detailed documentation, and longer lead times for any assignment.

For official guidance on employment-based categories, U.S. Citizenship and Immigration Services maintains an H-1B overview page explaining core rules and employer steps for specialty occupations. See the USCIS resource here: H-1B Specialty Occupations.

Visa channels in play — and why they may fall short

Employers typically consider several options when moving technical staff into U.S. projects:

1. H-1B for specialty roles tied to a specific degree field.
   • Common for engineers, but the annual cap and lottery make timing unpredictable.
   • The 3,500 limit for South Koreans creates an additional constraint.
   • Processing times and cap cycles often clash with construction and commissioning schedules.
2. L-1 for intracompany transferees.
   • L-1A covers managers and executives; L-1B covers staff with specialized knowledge about the company’s products, services, or processes.
   • Fits the Hanwha model for deploying seasoned personnel, but firms report heavier documentation, close vetting, and added cost.
   • Petitions are filed on Form I-129: Form I-129, Petition for a Nonimmigrant Worker.
   • For blanket L-1 cases, consular applicants may need Form I-129S: Form I-129S, Nonimmigrant Petition Based on Blanket L Petition.
3. Short-term business travel for setup, training, and inspections.
   • Fastest route but now the most sensitive after the Georgia raid.
   • Firms are limiting these trips or switching travelers to L-1 when possible due to exposure to immigration enforcement if duties exceed allowed business visitor activities.

Each route carries risk for a project on a tight build schedule:
– The H-1B cap is a hard numerical barrier.
– L-1 can work only if the company has the right corporate links and can prove the transfer fits the category.
– Business visitor travel is quick but legally precarious in the current enforcement climate.

Operational and financial consequences

What’s at stake in Philadelphia is not just the timeline for two docks and three quays, but whether the yard can scale to global best practices on assembly, automation, and quality control. If the flow of Korean specialists slows, managers say they will struggle to train enough local workers fast enough to hit production targets.

The U.S. labor shortage compounds the problem. Even with strong recruiting, apprenticeships, and community college partnerships, it takes months—often years—to build shipyard-grade skills.

Local suppliers are already pricing in delays. Insurance and financing terms often hinge on credible staffing plans. If Korean partners cannot rotate in the required talent, lenders may question schedules, and subcontractors could add premiums to cover risk. Philly Shipyard, a known name with past Navy and commercial work, could face cost creep that weakens the business case Hanwha Group laid out in August.

How companies are responding

For now, companies are adjusting playbooks to manage risk and maintain momentum:

• Front-loading documentation and evidence of job duties.
• Shifting more roles to L-1 where possible.
• Planning longer on-ramps for training U.S. workers.
• Advising early filing, careful duty descriptions, and tight compliance on job sites.
• Preparing for higher costs and longer timelines due to tightened vetting and enforcement.

Attorneys stress the importance of early filings and meticulous record-keeping to avoid exposure during audits or inspections. The goal is to keep specialists on the ground long enough to hand off the most complex tasks to local teams.

Important warning: Without clear, stable visa pathways or congressional action like the proposed “Partner with Korea Act,” the expansion’s timeline and cost structure remain vulnerable to enforcement shifts and processing uncertainties.

The broader test and next steps

The stakes are clear. With $5 billion committed and 5,000 direct jobs on the line, Philadelphia has become a test of whether the country can pair industrial goals with a visa system that meets real-time needs.

If the United States wants more ships, sooner, it must decide how to bring in the people who know how to build the yard that builds the ships—while still enforcing the law. For Hanwha Group and Philly Shipyard, the next moves in policy and practice will decide whether this bold expansion sails ahead or waits at anchor.