close
close

Hanwha buys Philly Shipyard for $100 million

Posted on by darion

Construction of the National Security Multi-Mission Vessel (NSMV) at the Philly Shipyard, February 9, 2024. Source: Philly Shipyard.

Philly Shipyard, an American tanker and cargo construction company, announced that on June 20, 2024, it has entered into a $100 million share purchase agreement with Hanwha Systems and Hanwha Ocean, two arms of the South Korean defense group.

Now owned by Norwegian industrial investor Aker Group, the shipyard has served as a yard for a number of seagoing vessels, often container ships and tankers.

“After two decades of management, it is with great honor that we transfer ownership from Aker to Hanwha,” said Kristian Røkke, president of Philly Shipyard ASA. “Recognized as a global leader, Hanwha brings a wealth of sophisticated shipbuilding experience that will enable Philly Shipyard to realize a greater vision for its employees and customers.”

This deal is not an isolated one. Rather, it is the latest move by South Korea’s growing defense industry looking to invest in U.S. naval facilities. It builds on U.S. Secretary of the Navy Carlos del Toro’s pivotal visit to Hyundai Heavy Industries in Japan and Hanwha in Korea in late February.

Del Toro’s office noted at the time that “discussions were very productive and focused on attracting Korean investment in integrated commercial and shipbuilding facilities in the United States.”

U.S. Secretary of the Navy Carlos del Toro (left) shakes hands with Representative Hanwha (right) during his visit to South Korea in February 2024. Source: US Navy.

Del Toro welcomed the news, stating: “Hanwha’s acquisition of Philly Shipyard is a game-changing milestone for our new maritime vessel.

Access the most comprehensive company profiles on the market, powered by GlobalData. Save hours of research. Gain a competitive advantage.

Company Profile – free sample

You will receive a download email shortly

We are sure of the exceptional quality of our company profiles. However, we want you to make the most beneficial decision for your business, which is why we offer a free sample, which you can download by submitting the form below

By GlobalData







Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information about your rights in relation to your personal data and how you can unsubscribe from future subscriptions marketing messages. Our services are intended for corporate subscribers and you warrant that the email address you submit is your corporate email address.

“This will bring good-paying union jobs to Philadelphia, a city with a 250-year relationship with the U.S. Navy. Knowing how they will change the competitive landscape of U.S. shipbuilding.

“I couldn’t be more excited to welcome Hanwha as the first Korean shipbuilder to arrive on American shores – and I’m sure it won’t be the last.”

Korean industry shapes American maritime vessels

This new, somewhat ambiguous term – seagoing vessel – came to describe del Toro’s time as head of the Navy.

During remarks at Harvard University’s John F. Kennedy School of Government in September 2023, he explained that China’s naval growth has been matched by its commercial maritime power, meaning the superpower has established ownership interests in 95 ports in 53 countries.

A week after the call for a bold new maritime vessel, Del Toro (right) and members of his team visited the Mare Island Dry Dock, located at the historic Mare Island Shipyard in Vallejo, California, on October 2, 2023. Source: DVIDS.

Maritime Statecraft is a proposal to reverse “operational and economic risks to the U.S. economy,” but how will Korean industry support this goal?

The U.S. Navy has been eyeing the industries of Japan and South Korea for some time to support the U.S. naval industrial base, which is under significant strain, by providing additional capabilities and resources to overtake China in the naval arms race.

Additionally, just a few months before purchasing the shares, Philly Shipyard signed a memorandum of understanding with Hyundai Heavy Industries. The two companies will explore relationships related to future U.S. government shipbuilding projects, as well as maintenance, repair and overhaul projects.