Hanwha Aerospace "Decides on Demerger to Strengthen Business Competitiveness"

Separation of Hanwha Vision and Hanwha Precision Machinery
Newly Established Corporation as 100% Subsidiary

Hanwha Group announced on the 5th that it will enhance management efficiency and strengthen business competitiveness by separating its defense and industrial solutions businesses.

According to Hanwha Aerospace's disclosure, Hanwha Vision, an AI solutions specialist company, and Hanwha Precision Machinery, which is responsible for next-generation semiconductor equipment business, will be separated. Through this, Hanwha Aerospace will make a fresh start as a defense company centered on three companies: Hanwha Aerospace, Hanwha Ocean, and Hanwha Systems.

Hanwha Aerospace will establish a new holding company, tentatively named Hanwha Industrial Solutions, responsible for the industrial solutions business through a spin-off. The new company will have Hanwha Vision and Hanwha Precision Machinery as 100% subsidiaries. After the spin-off, Hanwha Corporation will hold 33.95% stakes each in Hanwha Aerospace and Hanwha Industrial Solutions (tentative name).

With this business restructuring, Hanwha Aerospace aims to maximize management efficiency and, furthermore, to leap forward as a global comprehensive defense solutions company covering all areas from land to marine and space by building a defense business-centered portfolio.

Meanwhile, Hanwha Aerospace integrated its defense affiliates by absorbing Hanwha Defense in November 2022 and Hanwha Corporation's defense division in April 2023. In May last year, it expanded its business area to marine defense by acquiring Hanwha Ocean. This spin-off is evaluated as effectively completing the restructuring of the defense business.