Domestic Defense Company Pursues Acquisition of Australian Shipyard
MRO Business for US Navy Ships Alone Worth Over 20 Trillion Won
On the 1st of next month, the foreign and defense ministers of Korea and Australia will hold a 2+2 meeting in Australia. Korea only holds 2+2 meetings with the US and Australia, and this is the first time in three years since 2021.
On the 29th, a government official said, "It is expected that opinions will be exchanged on Korea's participation in the AUKUS (Australia, United Kingdom, United States Anglo-Saxon security alliance) technology cooperation framework during this meeting."
AUKUS consists of two programs: 'Pillar 1,' which provides nuclear-powered submarines to Australia, and 'Pillar 2,' which jointly develops advanced military technologies in eight fields including artificial intelligence, quantum computing, cybersecurity, and underwater technology. It is anticipated that Korea's inclusion as a partner in AUKUS 'Pillar 2' cooperation will be discussed.
Following Australia's import of 129 'Redback' armored vehicles from Hanwha Aerospace last year, Australia has shown interest in Korea's conventional submarines. Hanwha Ocean, a domestic defense company, is pursuing the acquisition of Australian defense firm Austal and is focusing on the maintenance, repair, and overhaul (MRO) business for US naval vessels. Austal is a defense shipbuilding company that designs, constructs, and delivers ships to the Australian and US navies, headquartered in Australia with shipyards in Alabama, USA. The US market size reaches approximately 20 trillion KRW annually. Japan has also entered the competition, aiming to expand its MRO business by leveraging US military bases in Yokosuka and Sasebo, Nagasaki Prefecture.
A Hanwha Ocean official stated, "We will start the MRO business in allied countries where the US Navy is stationed from the first half of this year," adding, "When securing ship orders, we will provide an 'MRO package' solution that manages the entire lifecycle of the vessels."
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