South Korean titans close $100 million US Shipyard acquisition
Hanwha's Strategic Acquisition of Philly Shipyard
South Korea’s Hanwha Ocean and Hanwha Systems have completed a significant acquisition. The two companies have purchased Philly Shipyard, a prominent U.S. shipbuilder, for $100 million. This acquisition marks a strategic move for Hanwha as it aims to expand its shipbuilding operations in the United States. Philly Shipyard specializes in both commercial and government projects, making it a valuable addition to Hanwha’s portfolio. The deal was first announced in June 2024, and after receiving necessary approvals, it has now been finalized.
A New Era for Hanwha Philly Shipyard
With the acquisition complete, the shipyard will now operate under the name “Hanwha Philly Shipyard.” This change signifies the beginning of Hanwha’s shipbuilding operations in the U.S. The company has ambitious plans to enhance production capabilities and create local jobs. David Kim, who previously served as executive vice president for Hanwha Defense USA, will take on the role of Chief Executive Officer. Kim expressed a strong commitment to building on the shipyard’s legacy. He stated, “We plan to grow and build on a long tradition of success, by expanding production using advanced technologies and supporting the national revitalization of U.S. shipyards.”
Philly Shipyard has a rich history, having delivered about 50% of all large ocean-going U.S. Jones Act commercial vessels since 2000. This includes tankers and boxships. Hanwha aims to leverage this history to establish itself as a trusted shipbuilder in the U.S. market. The company is focused on redefining sustainable maritime solutions for both commercial and government clients. This acquisition not only strengthens Hanwha’s position in the shipbuilding industry but also aligns with its broader goals of innovation and sustainability.
Hanwha’s Broader Vision and Future Plans
The acquisition of Philly Shipyard is part of a larger strategy for Hanwha Ocean. The company is actively pursuing growth opportunities both domestically and internationally. In addition to the Philly Shipyard acquisition, Hanwha has shown interest in acquiring Singapore’s Dyna-Mac, an offshore builder specializing in marine plant topside structures. This move reflects Hanwha’s commitment to expanding its capabilities in the maritime sector.
Moreover, Hanwha is also focusing on sustainability initiatives. In October 2024, the company entered into a five-year partnership with the Global Centre for Maritime Decarbonization (GCMD). This collaboration aims to advance maritime decarbonization through alternative low- and zero-carbon fuels, energy efficiency technologies, and onboard carbon capture. By integrating these sustainable practices, Hanwha is positioning itself as a leader in the green transition of the maritime industry.
Overall, 2024 has been a fruitful year for Hanwha Ocean. The company is making significant strides in both its business operations and sustainability efforts. With the acquisition of Philly Shipyard, Hanwha is not only expanding its footprint in the U.S. shipbuilding market but also reinforcing its commitment to innovation and environmental responsibility. As Hanwha Philly Shipyard embarks on this new journey, it is poised to make a lasting impact in the maritime industry.
