On December 20, Hanwha Group announced that it has completed all the formalities required for the acquisition of Philly Shipyard in the U.S.. In June, Hanwha Group signed a purchase agreement with Norwegian Aker, the shipyard’s parent company. This is the first time in the history of Korean companies to acquire a U.S. shipyard.
South Korean media said the acquisition of the Philly Shipyard is in line with new U.S. President Donald Trump’s request for shipbuilding cooperation from South Korea.
On November 7, Trump emphasized the importance of South Korea’s shipbuilding industry and expressed the need for cooperation during a call with South Korean President Yoon Seok-youl. During the call, Trump told Yoon Seok-youl, “The U.S. shipbuilding industry needs Korea’s help. I know very well that South Korea has world-class warship and shipbuilding capabilities, and I think we need to work closely with South Korea not only on ship exports, but also on warship maintenance, repair and overhaul.” He added that he hopes to have more detailed discussions with Yoon Seok-youl in the future regarding cooperation in shipbuilding.
Hanwha Group’s shipbuilding company Hanwha Ocean and defense company Hanwha Systems participated in the acquisition. The purchase price was about $100 million. Hanwha Group said the U.S. government actively supported the deal, and the Committee on Foreign Investment in the US (CFIUS) and the Directorate of Defense Trade Controls (DDTC) approved the acquisition plan in the first instance.
Hanwha Group plans to strengthen its presence in the U.S. shipbuilding market based on the production capacity and market experience of the Philly shipyard.
Founded in 1997, Philly Shipyard was formerly known as the U.S. Navy’s Philadelphia National Shipyard. Philly Shipyard has the largest domestic dock in the US, which specializes in the construction of merchant ships for coastal transportation and builds approximately 50 per cent of the US Jones Act-compliant large merchant ships, including tankers and container ships.
It is understood that the Philadelphia Shipyard will be renamed Hanwha Philly Shipyard after its sale to Hanwha Group.
Hanwha Group claims that it expects Hanwha Philly Shipyard to become an important base for the U.S. Navy’s shipbuilding and maintenance and repair (MRO) operations in the future. Currently, the U.S. is experiencing delays in the construction and maintenance of U.S. warships due to a lack of shipbuilding facilities.