Hanwha Group has raised 1 trillion won to expand its presence in the U.S. maritime and defense industries, with a major focus on shipbuilding and potential acquisitions of local shipyards. This ambitious move involves Hanwha Systems, Hanwha Ocean, and Hanwha Solutions investing heavily in their U.S. subsidiaries. The funds will be pooled together under Hanwha Defense & Energy, a newly established entity, with further investments expected through Hanwha Futureproof, a joint venture created by Hanwha Aerospace and Hanwha Solutions in 2023.
On November 24, the subsidiaries announced the additional equity purchases: Hanwha Systems invested 502 billion won, Hanwha Ocean contributed 516.2 billion won, and Hanwha Solutions allocated 285.3 billion won. These investments will support various ventures, including offshore maritime development and mergers with U.S. shipyards.
Hanwha Futureproof is set to control the funds, estimated at 1 trillion won, and will use them for future overseas mergers and acquisitions (M&A) as well as new business ventures. This initiative will center on shipbuilding projects, including the MASGA (Make American Shipbuilding Great Again) program, a Korea-U.S. cooperation to revitalize U.S. shipbuilding.
At the core of this investment strategy are Hanwha Systems and Hanwha Ocean, both of which hold equity in Philly Shipyard, a central hub for MASGA. Through this partnership, Hanwha Systems plans to explore the U.S. shipping business and apply its transportation and security technologies to vessels built in the U.S.
A Hanwha Systems official stated, “With the involvement of Hanwha Ocean and Hanwha Systems, the share of investment in shipping is expected to increase. Previously, Hanwha Futureproof focused on areas like battery energy storage systems (BESS), LNG infrastructure, and eco-friendly energy. However, this expanded investment will now also target U.S. maritime projects.”
Hanwha Ocean, which specializes in commercial and special-purpose vessels, is closely linked to the Hanwha Futureproof initiative. As a key player, Hanwha Ocean will collaborate with Hanwha Futureproof on projects, including shipbuilding at Philly Shipyard.
Additionally, Hanwha Aerospace is expected to leverage group capabilities to enter the U.S. defense market, which it has not yet penetrated. The company plans to expand Hanwha Futureproof to include defense sectors, with potential entry into U.S. defense markets for K-9 self-propelled howitzers and the Cheonmu multiple launch rocket system.
The focus on M&A is also expected to grow, with Hanwha Group pursuing acquisitions of additional U.S. shipyards. After acquiring Philly Shipyard for $100 million (approximately 150 billion won) in December, Hanwha has expressed interest in acquiring more local shipyards. To bolster this effort, Hanwha Futureproof is hiring M&A specialists at its New York headquarters, further signaling the group’s intent to expand through acquisitions.
A Hanwha Group official remarked, “Each affiliate will not only enter the U.S. market but also share in the revenue of Hanwha Futureproof, where they hold equity. The group’s broader strategy is to pursue investments across all sectors in the U.S.”
