This photo provided by Hanwha Group shows a panoramic view of Philly Shipyard Inc. in Philadelphia, Pennsylvania. (Image courtesy of Yonhap)
SEOUL, Jun. 21 (Korea Bizwire) — Hanwha Group said Friday it has invested US$100 million in Philly Shipyard Inc. to acquire a 100 percent stake in the U.S. shipbuilder, marking the first entry of a South Korean company into the U.S. shipbuilding industry.
The acquisition involves the group’s two defense units, Hanwha Systems Co. and Hanwha Ocean Co., according to Hanwha Group.
Founded in 1997, Philly Shipyard is a subsidiary of Aker ASA, a Norwegian industrial investment company. It has delivered approximately half of the large U.S. Jones Act commercial ships in the United States since 2000.
The shipyard constructs not only large commercial vessels, including tankers and container ships, but also training vessels for the U.S. Maritime Administration (MARAD).
Hanwha Group said it plans to utilize Philly Shipyard’s largest dock in the United States for shipbuilding, maintenance, repair and operations, tapping into the U.S. naval market, which is in need of additional shipbuilding facilities due to a production shortage for the Navy’s fleet.
This photo provided by Hanwha Group shows a panoramic view of Philly Shipyard Inc. in Philadelphia, Pennsylvania. (Image courtesy of Yonhap)
Hanwha Systems, the group’s defense electronics and IT technologies unit, aims to collaborate with the U.S. shipbuilder to develop civilian merchant ships capable of autonomous operations.
The company’s advanced technologies in unmanned maritime systems, naval radars and sensors will be integrated into commercial vessels and special-purpose ships, such as unmanned underwater vehicles.
Hanwha Ocean plans to diversify its sales by leveraging Philly Shipyard’s expertise in midsized tankers and container ships. This acquisition is expected to expand Hanwha Ocean’s market presence by securing an overseas production base and increasing orders in these segments.
“The opportunity to collaborate with Philly Shipyard, a significant shipbuilder with a storied history, is an exciting strategic opportunity that will allow Hanwha Systems to deploy its state-of-the-art naval systems and associated technologies in the U.S. market,” said Eoh Sung-chul, CEO of Hanwha Systems.
(Yonhap)
