Hanwha buys Philly Shipyard in $100m deal
South Korean conglomerate Hanwha Group has acquired Philly Shipyard for $100 million, making it the first Korean company to enter the US shipbuilding industry.
Announced Friday, the acquisition involves Hanwha Systems holding a 60 percent stake and Hanwha Ocean with a 40 percent stake. These subsidiaries specialize in defense and shipbuilding, respectively.
Philly Shipyard, located in the historic US city of Philadelphia on the Delaware River, constructs commercial vessels in compliance with the Jones Act, which mandates that goods transported between US ports be carried on American-built ships. It has produced more than half of the petrochemical carriers and container ships in the US, and also specializes in offshore wind installation vessels and government ships, including training vessels for the US Maritime Administration.
Philly Shipyard is also noted for its work in repairing and modifying naval transport ships. Last July, US President Joe Biden attended a steelcutting ceremony at the shipyard for an offshore wind farm vessel.
For Hanwha Group, this acquisition serves as an entry point into the US commercial marine and defense markets. Hanwha Systems plans to develop autonomous commercial ships, leveraging its expertise in ship combat systems and logistics support platforms. The company aims to supply advanced smart ship solutions, such as engineering control systems and automated control systems, to the commercial shipping sector.
Hanwha Ocean aims to diversify its revenue by establishing a US production base and expanding its work on medium-sized tankers and container ships, building on Philly Shipyard’s strengths.
The shipyard’s large docking facilities will also support Hanwha’s maintenance, repair and operations services, positioning the group to capitalize on the extensive needs of the US Navy’s shipbuilding and maintenance market.