Hanwha Group Successfully Acquires US Philippine Shipyard... First Korean Company to Do So

At $100 Million... Utilizing U.S. Navy Shipbuilding and MRO Hub

Hanwha Group has become the first domestic company to successfully acquire a U.S. shipyard. This achievement raises its status as a world-leading shipbuilding, marine, and defense company while establishing a foothold for full-scale entry into the U.S. shipbuilding industry.

Hanwha Group announced on the 20th that it has completed all procedures for acquiring Philly Shipyard, located in Philadelphia, USA. This comes six months after signing the main contract with its parent company, Aker, a Norwegian oil, gas, and renewable energy specialist, on June 20.

Exterior view of the American Philly Shipyard acquired by Hanwha Group (Provided by Hanwha Ocean)

Philly Shipyard is a U.S. subsidiary of Aker, established in 1997 on the site of the U.S. Navy’s Philadelphia Naval Shipyard. It specializes in building coastal transport vessels and has a track record of supplying about 50% of large commercial vessels subject to the U.S. Jones Act, including petrochemical product carriers and container ships. It has also participated in the U.S. Maritime Administration’s (MARAD) multipurpose training ship (NSMV) construction project and has demonstrated excellent performance not only in commercial vessels but also in marine wind turbine installation vessels, government vessels, and repair and modification projects for naval transport ships.

The acquisition was jointly carried out by Hanwha Ocean and Hanwha Systems. The acquisition amount is approximately 100 million USD (about 145 billion KRW). Through this acquisition, Hanwha Group aims to secure a strategic foothold in the North American shipbuilding and defense markets. It is a stepping stone to becoming a truly global marine company.

In particular, the acquisition received significant interest and support from the U.S. government. Approvals from the U.S. Committee on Foreign Investment in the United States (CFIUS) and the Directorate of Defense Trade Controls (DDTC) were swiftly confirmed in the first round. This is interpreted as a reflection of the U.S. government’s positive evaluation of Hanwha Group’s acquisition of Philly Shipyard and the expectation that it will contribute to revitalizing the U.S. shipbuilding and defense industries.

Donald Trump, then President-elect of the United States, also stated on the 7th of last month, “We are well aware of Korea’s world-class capabilities in warship and shipbuilding,” adding, “It is necessary to cooperate closely with Korea not only in ship exports but also in maintenance, repair, and overhaul sectors.”

Hanwha Ocean plans to strengthen its position in the North American shipbuilding market based on Philly Shipyard’s production capabilities and market experience. By maximizing efficiency through Hanwha Ocean’s world-class eco-friendly ship technology and smart production such as production automation, it intends to increase its market share in high value-added ship sectors.

Hanwha Systems also plans to support the development of next-generation vessels equipped with autonomous navigation technology and enhance the shipyard’s technological competitiveness by partially introducing advanced technologies such as integrated control devices and ship automatic control systems.

Exterior view of the American Philly Shipyard acquired by Hanwha Group (Provided by Hanwha Ocean)

Hanwha Group plans to utilize Philly Shipyard as a key hub for the U.S. Navy’s shipbuilding and maintenance, repair, and overhaul (MRO) business in the future. Currently, the U.S. Navy is facing a shortage of ship production facilities, and Philly Shipyard is evaluated as the optimal facility to resolve this issue. Hanwha Ocean is expected to play a leading role in the marine defense market within the North American market, achieving both sales diversification and global influence simultaneously.

A Hanwha Group official said, “The acquisition of Philly Shipyard will be an important turning point for Hanwha Group to strengthen its position in the global marine defense industry,” adding, “Based on the best technology and sustainable marine solutions, we will create new growth engines in the North American market and expand our influence in the global market.”