On December 19, 2024, Hanwha Systems and Hanwha Ocean announced the completion of their $100 million acquisition of Philly Shipyard, a leading U.S. shipbuilder for commercial and government projects.
Hanwha press release
In September 2024, Hanwha received approval from the Committee on Foreign Investment in the United States (CFIUS). After all necessary approvals are received and the financial transaction is completed, the newly named “Hanwha Philly Shipyard” will officially begin Hanwha's shipbuilding operations in the United States
As part of this acquisition, David Kim will assume the role of Chief Executive Officer to lead the shipyard through this transition. Previously, Kim served as Executive Vice President for Hanwha Defense USA and played a critical role in planning Hanwha's acquisition of Philly Shipyard.
“Hanwha Philly Shipyard begins an exciting new chapter today. We want 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 that challenges and redefines sustainable maritime solutions for commercial and government customers. We want to achieve this by pushing the boundaries of shipbuilding by combining people with technology to build world-class ships.”
David Kim, new CEO of Hanwha Philly Shipyard
Hanwha wants to build on the success of Philly Shipyard, founded in 1997, which has delivered around 50% of all large ocean-going US Jones Act carriers, including tankers and container ships, since 2000. Philly Shipyard's recent completion of a second National Security Multi-Mission Vessel (NSMV) for the Maritime Administration strengthens the shipyard'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 shipyard's capacity and enter new markets. Hanwha is proud to join the Philadelphia community and is committed to deepening local relationships and advancing workforce development initiatives. Hanwha looks forward to a smooth transition into the US shipbuilding industry to drive sustainable and inclusive growth.
Taking Hanwha's experience to new shores
The joint investment by Hanwha Systems and Hanwha Ocean to acquire Philly Shipyard from Philly Shipyard ASA, a Norwegian company listed on 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. Known for its sophisticated, state-of-the-art technology used to build some of the largest ships in service today, Hanwha operates one of the largest shipyards in the world, Hanwha Ocean, covering approximately 4.9 million square meters on Goeje Island , Korea. Hanwha Ocean is at the forefront of building a clean energy value chain and developing environmentally friendly, high-efficiency marine solutions.
Hanwha Systems is considered a Korean market leader due to its expertise in developing technologies for unmanned maritime systems, naval radars and sensors for Manned-Unmanned Teaming (MUM-T) operations, and naval maintenance, repair and overhaul (MRO) platforms Naval systems combat systems. Hanwha Systems provides comprehensive marine security and maritime services authorization solutions that can provide synergies with various commercial vessel portfolios.
CEO David Kim said:
“Given Philadelphia’s rich history in shipbuilding, Hanwha is committed to ushering in a new era of success.”
“Our goal is to build on Philly Shipyard’s achievements, expand into naval vessel production and increase local employment opportunities. With Hanwha’s global reach, extensive 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.”