Hanwha Finalizes Acquisition of Singapore Marine Plant Company... Aiming for Trump Energy Boom

Dynamac Secures 95% Stake Through Tender Offer
Remaining Shares to Be Acquired by Force
Lower Labor Costs Than Korea... Increased Cost Competitiveness
Quality Capabilities Superior to Competitors

Hanwha Group has completed the acquisition of Singapore-based marine equipment manufacturer Dyna-Mac. There is growing anticipation that the company will benefit from the so-called 'Trump effect' following the energy and shipbuilding policies of U.S. President-elect Trump.

According to the Financial Supervisory Service's electronic disclosure system on the 21st, Hanwha Aerospace announced that its subsidiary Hanwha Ocean SG Holdings acquired 95.15% of Dyna-Mac Holdings' shares through a public tender offer. The total amount invested in the acquisition was 820.7 billion KRW.

Hanwha Ocean and Hanwha Aerospace had secured a 25.4% stake in Dyna-Mac by investing 115.8 billion KRW until May, and then proceeded with a public tender offer for the remaining shares through a local special purpose company (SPC) in Singapore. The remaining 4.85% of shares will be compulsorily acquired in accordance with local stock exchange regulations.

The offshore plant topside structure manufactured by Dynamac is being transported. Dynamac website

Founded in 1990, Dyna-Mac specializes in manufacturing topside structures for Floating Production Storage and Offloading units (FPSO) and Floating Liquefied Natural Gas units (FLNG). The topside structures of FPSO and FLNG include equipment for the extraction, storage, and transportation of oil and gas, requiring precise design and advanced technical expertise. Leveraging competitive labor and multinational workforce management capabilities, the company maintains excellent delivery and quality performance.

Hanwha plans to strengthen its global marine business competitiveness by utilizing Dyna-Mac's technological capabilities and production base. In particular, Hanwha Ocean intends to pursue large-scale project orders through a 'multi-yard strategy' that diversifies marine plant production bases.

They also expect to secure cost competitiveness based on low labor costs. Marine equipment hulls can be manufactured at Hanwha Ocean's Geoje plant, while topside structures can be produced at Dyna-Mac's production bases in Singapore and China and then assembled. This approach is much more advantageous in terms of wage rates and other costs compared to manufacturing the entire facility in Korea.

A Hanwha official stated, "By expanding production bases in the marine business sector, we plan to respond effectively to global market conditions and actively expand the marine plant business through superior quality and cost competitiveness compared to competitors."

Recently, with U.S. President-elect Trump advocating policies to expand the fossil fuel industry, the FPSO and FLNG markets are expected to receive increased attention. President-elect Trump criticized the Biden administration's energy development restrictions for causing inflation and pledged to increase fossil fuel usage to halve energy production costs.