Hanwha Group Acquires Philly Shipyard
Hanwha Group Completes Acquisition of Philly Shipyard, First Korean Firm to
On December 20, Hanwha Group announced the successful completion of its acquisition of Philly Shipyard, a prominent shipbuilding facility located in Philadelphia, USA. This acquisition, valued at approximately $100 million, marks a significant milestone for Hanwha Group. The deal was finalized about six months after the company entered into a main contract with its parent company, Norway’s Aker Group, on June 20.
The acquisition allows Hanwha Group to establish a strong foothold in the North American shipbuilding and defense markets. This strategic move is expected to enhance the company’s capabilities and influence in the global maritime industry. The U.S. government played a supportive role in this acquisition, granting rapid approvals from the Committee on Foreign Investment in the United States (CFIUS) and the Directorate of Defense Trade Controls (DDTC).
Hanwha Ocean, a subsidiary of Hanwha Group, plans to utilize Philly Shipyard’s production capabilities and market experience to strengthen its position in the North American shipbuilding sector. The company aims to maximize production efficiency by employing world-class eco-friendly ship technology and automated production systems. Additionally, Hanwha Group intends to increase its share in the high-value ship market, which includes advanced vessels designed for various applications.
Meanwhile, Hanwha Systems will focus on supporting the development of next-generation vessels. This includes integrating autonomous navigation technology and introducing advanced technologies to enhance the shipyard’s technical competitiveness. The acquisition is poised to create new growth opportunities for Hanwha Group in the North American market, leveraging its superior technological capabilities and sustainable marine solutions.
Philly Shipyard’s Legacy and Future Role
Philly Shipyard has a rich history, having been established in 1997 as a subsidiary of Norway’s Aker Group. The shipyard has built a strong reputation for supplying about 50% of large commercial vessels, including coastal transportation ships, petrochemical carriers, and container ships. Its notable projects include the construction of multipurpose training vessels (NSMV) in collaboration with the U.S. Department of Transportation’s Maritime Administration (MARAD). The shipyard has also made significant contributions to marine defense, offshore wind installation vessels, public service vessels, and the repair and modification of navy transport vessels.
Looking ahead, Philly Shipyard is expected to play a crucial role in the construction and maintenance of U.S. Navy vessels. The U.S. Navy currently faces challenges related to insufficient ship production facilities. Philly Shipyard is viewed as an optimal facility to address these issues, providing the necessary infrastructure and expertise to support the Navy’s needs.
An official from Hanwha Group emphasized the importance of this acquisition, stating, “The acquisition of Philly Shipyard will mark a significant turning point for Hanwha Group in strengthening its position in the global maritime defense industry.” The company aims to create new growth momentum in the North American market while expanding its influence in the global maritime sector. With this acquisition, Hanwha Group is well-positioned to lead the way in innovative shipbuilding and defense solutions.
