South Korean company Hanwha Group has acquired all of Keppel’s stake in Singapore-based offshore facility maker Dyna-Mac for S$100 million ($73.8 million).
Under the deal, Hanwha Group’s shipbuilding subsidiary Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) will hold a 21.52 % stake in Dyna-Mac, and Hanwha Aerospace will hold a 2.39 % stake.
Dyna-Mac is known as a renowned manufacturer of Floating Production Storage and Offloading (FPSO), Floating Storage and Offloading (FSO) and Floating Storage and Regasification Unit (FSRU) topside modules. The company has two offshore shipyards in Singapore and has joint ventures and partnerships with shipyards in China, Malaysia and the Philippines.
Last August, Dyna-Mac signed a memorandum of understanding (MoU) with Offshore and marine provider Kim Heng aimed at securing additional shipyard resources to cope with the surge in demand for FPSO module fabrication.
Under the agreement reached between subsidiaries of the two parties, Dyna-Mac has the option to acquire two of Kim Heng’s shipyards with a total length of 205 meters at an agreed price. The partnership would provide Dyna-Mac with greater flexibility and enable it to further consolidate its strategic position in the offshore module manufacturing business through inorganic growth in capacity.
In April this year, Dyna-Mac announced that it had been awarded a contract for the construction of process modules, which it described as “the largest contract ever won, involving a record tonnage and number of process modules in a single contract”, with a delivery period to 2026. With this contract, Dyna-Mac’s net order book reaches a record S$896 million (approximately RMB 4.8 billion).
Hanwha Group is the seventh largest conglomerate in Korea, spanning the energy, defense and financial sectors. The group also completed the acquisition of HSD Engine, the world’s second-largest manufacturer of marine low-speed engines, and renamed it Hanwha Engine.