Hanwha maintains a well-balanced business portfolio spanning aerospace and defense, energy, marine and materials, finance, machinery, and distribution and services, enabling the company to respond proactively to a rapidly changing business environment and continue its growth. (Image from Hanwha Group webpage)
SEOUL, Dec. 12 (Korea Bizwire) — Hanwha Group secured approval from the Australian government to increase its stake in Austal Ltd., advancing the South Korean conglomerate’s effort to expand its defense and shipbuilding footprint across Oceania and North America.
Australia’s Treasurer Jim Chalmers said the government will allow Hanwha to lift its shareholding in the Perth-based shipbuilder to 19.9% from 9.9%, according to local media reports Friday. Chalmers also made clear the group will not be permitted to exceed that threshold.
Austal, which counts the U.S. Navy among its major customers, operates shipyards in Australia and the United States and is considered a strategic defense asset—one reason the company rejected Hanwha’s takeover proposal in April 2024.
Hanwha acquired its initial 9.9% stake in March through affiliates Hanwha Aerospace and Hanwha Systems, then sought clearance from both Canberra and Washington to raise its investment by another 10 percentage points.
A U.S. Navy Littoral Combat Ship (LCS) manufactured by Austal (Image source: Screenshot from Austal’s official website)
The U.S. government granted approval in June for a potential full acquisition, underscoring Washington’s comfort with Hanwha’s growing role in its defense industrial base.
The decision also follows Hanwha’s 2023 purchase of Philly Shipyard in the United States, part of a broader strategy to expand its naval capabilities and global reach.
Hanwha said it intends to use its shipbuilding expertise to strengthen Austal’s competitiveness while exploring wider cooperation in U.S. and Australian defense programs.
“We respect the Australian government’s decision and will continue working to maintain strong bilateral ties and create shared value,” the company said.
Ashley Song (ashley@koreabizwire.com)
