South Korea-based Hanwha Systems and Hanwha Ocean have closed their acquisition of U.S. shipbuilder Philly Shipyard for approximately $100 million to expand its footprint in the U.S. market for defense growth and commercial shipbuilding.
David Kim, most recently executive vice president for Hanwha Defense USA, has been appointed CEO of the acquired company, which will operate as Hanwha Philly Shipyard.
“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,” Kim said in a statement published Thursday.
“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,” the chief executive added.
In June, Hanwha agreed to acquire the U.S. shipbuilder from Norway-based Philly Shipyard ASA, which is majority owned by Norwegian industrial investment company Aker ASA.
US Shipbuilder Supporting Government Projects
Founded in 1997, Philly Shipyard constructs training vessels for the U.S. Maritime Administration, or MARAD. The company recently completed the second National Security Multi-Mission Vessel for MARAD.
Since 2000, the company has supplied about 50 percent of all large U.S. Jones Act-compliant commercial vessels, including tankers and container ships.
Developing Defense Electronics for Naval Systems
Hanwha Systems develops radars and sensors for manned-unmanned teaming, or MUM-T, operations, maintenance, repair and overhaul platforms for naval combat systems and technologies for unmanned maritime systems.
Hanwha Ocean is a global company that has pioneered new businesses since 1973. It has produced LNG carriers, destroyers, submarines, frigates, commercial ships, speciality vessels and drillships. The business is also at the forefront of developing advanced maritime platforms for decarbonization.
