Arizona Tribune - Hanwha Closes $100 Million Philly Shipyard Acquisition

Today, Hanwha Systems and Hanwha Ocean, global pioneers in transformative solutions and impactful innovations, announced the successful completion of their $100 million acquisition of Philly Shipyard, a leading U.S. shipbuilder for commercial and government projects.

In September 2024, Hanwha received Committee on Foreign Investment in the United States (CFIUS) approval. With all the appropriate approvals secured and the financial transaction completed, the newly named, "Hanwha Philly Shipyard" officially begins Hanwha's shipbuilding operations in the U.S.

As a part of this acquisition, David Kim will step in to the role of Chief Executive Officer to guide the shipyard through this transition. Kim previously served as executive vice president for Hanwha Defense USA and played an instrumental role leading the planning for Hanwha's acquisition of Philly Shipyard.

"Hanwha Philly Shipyard begins an exciting new chapter today," said David Kim, Hanwha Philly Shipyard's new CEO. "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. Together, we begin working toward our vision for Hanwha Philly Shipyard: to be a trusted U.S. shipbuilder, challenging and redefining sustainable maritime solutions for commercial and government clients. We intend to do that by pushing the boundaries of shipbuilding by combining people with technology to build best-in-class vessels."

Hanwha seeks to build on the success of Philly Shipyard, established in 1997, that 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.

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. Proud to join the Philadelphia community, Hanwha is committed to deepening local ties and advancing workforce development initiatives. Hanwha looks forward to a smooth transition into the U.S. shipbuilding industry to drive sustainable and inclusive growth.

Bringing Hanwha's Experience to New Shores

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 (Oslo: PHLY) 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.

With this purchase, Hanwha further expands into the U.S. market for commercial shipbuilding and defense growth. Hanwha is recognized for its sophisticated, cutting-edge technology that is used to build some of the largest ships in use today and operates one of the world's largest shipyards, Hanwha Ocean, spanning approximately 4.9 million square meters in Goeje Island, Korea. Hanwha Ocean is at the forefront of building a clean energy value chain developing eco-friendly, highly efficient marine solutions.

Hanwha Systems is regarded as the leader for Korean naval systems given its proficiency in developing technologies for unmanned maritime systems, naval radars and sensors for Manned-Unmanned Teaming (MUM-T) operation, and maintenance, repair and overhaul (MRO) platform for naval combat systems. Hanwha Systems provides comprehensive solutions for naval security and approval of maritime services that may have synergies with various commercial ship portfolios.

"With Philadelphia's rich history in shipbuilding, Hanwha is eager to usher in a new era of success," CEO David Kim said. "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."

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About Hanwha Systems

Hanwha Systems is a global total solutions company offering world's top class defense electronics products based on land and naval, avionics and space, security and safety, and information systems service.

Now Hanwha System is expanding and strengthening SI Business capabilities for public infrastructure and private security business areas.

Our ultimate goal is to provide hyper-intelligence, hyper-connectivity, and hyper-convergence technologies that can safely and seamlessly connect mankind without any boundaries not only in the physical space world but also in the digital space.

For more information, visit: https://www.hanwhasystems.com/en/index.do

About Hanwha Ocean

Hanwha Ocean is a leading global company with extensive expertise and experience in the shipbuilding and offshore industry. Boasting the world's most competitive LNG carriers built with eco-friendly and highly efficient technology, the company has continuously pioneered new businesses since 1973, producing a vast range of vessels, including commercial ships, drillships, and specialty ships. Hanwha Ocean will be at the forefront of pioneering advanced marine solutions for decarbonization and further expand Hanwha's green energy ecosystem to create positive, sustainable change throughout the world.

For more information, visit: www.hanwhaocean.com

Media Contact
Kelly Whitaker, VP Sustainability and Communications
[email protected]

SOURCE: Hanwha Philly Shipyard, Inc.

A.Taylor--AT