Hanwha Closes $100 Million Philly Shipyard Acquisition
On December 19, 2024, Hanwha Systems and Hanwha Ocean announced a significant milestone in the maritime industry. They completed a $100 million acquisition of Philly Shipyard, a prominent U.S. shipbuilder known for its work on both commercial and government projects. This acquisition marks a pivotal moment for Hanwha as it expands its operations into the U.S. shipbuilding market. The deal received approval from the Committee on Foreign Investment in the United States (CFIUS) in September 2024, paving the way for Hanwha to officially launch its shipbuilding operations under the new name, “Hanwha Philly Shipyard.”
Leadership Transition and Future Vision
As part of this transition, David Kim has been appointed as the Chief Executive Officer of Hanwha Philly Shipyard. Kim previously served as the executive vice president for Hanwha Defense USA and played a crucial role in orchestrating the acquisition. His leadership is expected to guide the shipyard through this new chapter. In his statement, Kim expressed excitement about the future, emphasizing the company’s commitment to innovation and sustainability. He stated, “We plan to grow and build on a long tradition of success, by expanding production using advanced technologies.”
Hanwha Philly Shipyard aims to redefine maritime solutions for both commercial and government clients. The company plans to leverage advanced technologies to enhance production capabilities. The shipyard has a rich history, having delivered around 50% of all large ocean-going U.S. Jones Act commercial ships since 2000. Recently, it completed a second National Security Multi-Mission Vessel (NSMV) for the Maritime Administration, solidifying its strong position in the U.S. market. Hanwha’s acquisition is expected to create numerous local jobs and expand the yard’s capabilities, contributing to the revitalization of U.S. shipbuilding.
Expanding Horizons: Hanwha’s Global Expertise
The acquisition of Philly Shipyard is a strategic move for Hanwha Systems and Hanwha Ocean, further extending their reach into the U.S. commercial shipbuilding and defense sectors. The deal was first announced in June 2024, when Hanwha acquired Philly Shipyard from Philly Shipyard ASA, a Norwegian company. This acquisition aligns with Hanwha’s vision of becoming a leader in the global shipbuilding market.
Hanwha is renowned for its advanced technology and operates one of the world’s largest shipyards, Hanwha Ocean, located on Goeje Island, Korea. This facility spans approximately 4.9 million square meters and is at the forefront of developing eco-friendly marine solutions. Hanwha Systems is recognized for its expertise in naval systems, including unmanned maritime systems and naval radars. The company aims to integrate these technologies into its U.S. operations, enhancing the capabilities of Hanwha Philly Shipyard.
David Kim highlighted the importance of Philadelphia’s rich shipbuilding history. He stated, “We aim to build on Philly Shipyard’s achievements, expand into naval vessel production, and increase local employment opportunities.” With Hanwha’s extensive experience and technological prowess, the company is poised to drive remarkable growth in the U.S. shipbuilding industry. The future looks promising as Hanwha Philly Shipyard embarks on this new journey, committed to sustainable and inclusive growth in the maritime sector.
