Hanwha makes history with the $100m Philly Shipyard acquisition as it is targeting the U.S. market for further growth in the commercial shipbuilding and in defense.
Last week Hanwha Systems and Hanwha Ocean announced the successful completion of their $100m acquisition of Philly Shipyard, a U.S. shipbuilder for commercial and government projects.
The newly named Hanwha Philly Shipyard officially begins Hanwha’s shipbuilding operations in the U.S., with the company Hanwha having plans to invest in Philly facilities to expand production using advanced shipbuilding technologies.
“Hanwha Philly Shipyard begins an exciting new chapter today,” said David Kim, Hanwha Philly Shipyard’s new chief executive officer, who previously served as executive vice president for Hanwha Defense USA.
“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,” he added.
Philly Shipyard, established in 1997, delivered around 50% of all large ocean-going U.S. Jones Act commercial ships since 2000, including tankers and container ships.
Philly Shipyard’s recent completion of a second national security multi-mission vessel (NSMV) for the Maritime Administration reinforces the yard’s strong position in the U.S. market, the company’s statement reads.
Hanwha Systems and Hanwha Ocean’s joint investment to acquire Philly Shipyard from Philly Shipyard ASA, a Norwegian company that is listed on the Euronext Expand Oslo and majority-owned by Aker ASA, a Norwegian industrial investment company with ownership interests in energy, green technologies and marine biotechnology, was first announced in June 2024.
In September 2024, Hanwha received Committee on Foreign Investment in the United States (CFIUS) approval.
Hanwha Systems offers defense electronics products based on land and naval, avionics and space, security and safety, and information systems service, whilst Hanwha Ocean is a global company with expertise in the shipbuilding and offshore industry.
With Hanwha’s capacity and ambition, Hanwha Philly Shipyard plans to create a significant number of local jobs, expand the yard’s capabilities and scale into new markets.
“We aim to build on Philly Shipyard’s achievements, expand into naval vessel production and increase local employment opportunities. With Hanwha’s global scale, deep technology expertise, and more than 50 years of shipbuilding experience we look forward to driving remarkable growth, and we can’t wait to embark on this new journey as Hanwha Philly Shipyard,” the new CEO David Kim added.
