DSME sets sail for a fresh start reborn as Hanwha Ocean

South Korea’s shipbuilding major Daewoo Shipbuilding & Marine Engineering (DSME) is set to undergo a significant transformation under the Hanwha Group. The company will soon be rebranded as Hanwha Ocean, marking a new era for the organization.

In an extraordinary board meeting held on May 8, it was decided to propose amendments to DSME’s articles of incorporation. These proposed changes encompass not only the alteration of the corporate name but also the appointment of internal and external directors. The final approval for these modifications will be sought at an extraordinary general meeting of shareholders scheduled for May 23.

Following the implementation of the amended articles of incorporation, DSME will officially adopt the name Hanwha Ocean. This rebranding signifies a significant milestone for the company as it embarks on a fresh chapter in its history. This will be the second time in 45 years that DSME has undergone a name change, the previous one occurring when it was acquired by Daewoo Group back in 1978.

The move is being announced on the back of a green light for Hanwha’s takeover deal from South Korea’s Fair Trade Commission (FTC) issued last month. The long-awaited approval from South Korea’s regulatory body marked the removal of the final hurdle in DSME’s acquisition process.

Namely, the deal had secured nods from the European Union, Turkey, Vietnam, Britain, Japan, China, and Singapore.

The $1.5 acquisition deal between the duo was signed in December 2022. DSME, which has faced numerous challenges in recent years including a failed takeover from Hyundai Heavy Industries Holdings (HHIC), has been under the control of the state-run Korea Development Bank (KDB) for more than two decades. Despite multiple unsuccessful attempts to secure a buyer during this period, Hanwha Group managed to complete the acquisition.

According to the agreed terms, Hanwha will assume a 49.3 percent stake in Daewoo Shipbuilding & Marine Engineering through the acquisition of over 104 million newly issued shares. Meanwhile, the KDB will retain a 28.2 percent stake in the shipbuilder. This strategic move is expected to position Hanwha as a key player in the maritime industry, further diversifying its portfolio within the defense and energy sectors.

Moving forward, DSME aims to leverage its expertise and competitiveness in the maritime industry, with a strategic focus on LNG carriers and containerships, while also pursuing high-value-added contracts and advancing eco-friendly initiatives in shipbuilding.

So far this year, DSME has secured three orders for LNG carriers worth over $1.02 bn as South Korean shipbuilders continue to reap fruit from the growing demand for high-end ships featuring dual-fuel propulsion and advanced technology.