Two South Korean titans close $100 million US shipyard acquisition

South Korea’s shipbuilder Hanwha Ocean and compatriot aerospace and defense company Hanwha Systems have wrapped up a $100 million acquisition of Philly Shipyard, a US shipbuilder focused on commercial and government projects.

Following the announcement of the transaction back in June 2024, whereby Hanwha Systems and Hanwha Ocean revealed a joint investment plan to acquire Philly Shipyard, the two South Korean majors reportedly obtained a Committee on Foreign Investment in the United States (CFIUS) approval in September.

As informed, prior to the purchase, the yard was controlled by Aker ASA, a Norwegian industrial investment company with ownership interests in energy, green technologies, and marine biotechnology.

With all the necessary stamps of approval secured and the financial transaction closed, the newly (re)named “Hanwha Philly Shipyard” has now officially begun Hanwha’s shipbuilding operations in the US, the company elaborated.

As a part of this transaction, David Kim, who previously served as executive vice president for Hanwha Defense USA, is now set to step into the role of Chief Executive Officer.

“We plan to grow and build on a long tradition of success, by expanding production using advanced technologies and supporting the national revitalization of US shipyards. Together, we begin working toward our vision for Hanwha Philly Shipyard: to be a trusted US shipbuilder, challenging and redefining sustainable maritime solutions for commercial and government clients,” Kim highlighted.

With this purchase, Hanwha—which operates the Hanwha Ocean yard that spans approximately 4.9 million square meters on Goeje Island, South Korea—said that its goal was to “build on the momentum” of Philly Shipyard, believed to have delivered around 50% of all large ocean-going US Jones Act commercial vessels since 2000 (including tankers and boxships).

More specifically, it is understood that the new Hanwha Philly Shipyard will endeavor to create more local jobs and ‘expand its capabilities.’

The year 2024 can be described as ‘fruitful’ for Hanwha Ocean, which made numerous steps within both its business and sustainability-oriented portfolio.

In addition to the acquisition of Philly yard, the South Korean heavyweight had also set its sights ‘closer to home’; namely, in October this year, Hanwha showed interest in fully taking over Singapore’s offshore builder Dyna-Mac which specializes in manufacturing marine plant topside structures for floating production, storage, and offloading (FPSO) and floating liquefied natural gas (FLNG) units.

After the initial offer announcement, made by the United Overseas Bank on behalf of the South Korean shipbuilder, Hanwha eventually threw a boost of 11.67% to the Dyna-Mac shareholders in mid-October.

On the green end of its initiatives, that same month, Hanwha shook hands with the Global Centre for Maritime Decarbonization (GCMD), having penned a five-year partnership to ‘advance’ maritime decarbonization within the realm of alternative low-/zero carbon fuels, energy efficiency technologies as well as onboard carbon capture.