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Hanwha invests $234 million to acquire stake in Austal and strengthen foothold in global warship market

Published: 18 Mar. 2025, 10:28 Updated: 18 Mar. 2025, 12:07

LEE JAE-LIM
[email protected]

Aerial view of Austal’s U.S. shipyard in Alabama

Hanwha will invest 337.8 billion won ($234 million) to acquire a stake in Austal, an Australia-based shipbuilder, as part of its strategy to expand into global maritime markets, including the United States.

Hanwha Systems and Hanwha Aerospace will inject 202.7 billion won and 64.2 billion won, respectively, into their Australian subsidiary, HAA, through a paid-in capital increase, the companies announced in separate regulatory filings.

Of the total investment, HAA allocated 168.7 billion won to purchase a 9.9 percent stake in Austal on Tuesday.

Hanwha Ocean had previously attempted to acquire Austal last year, but the deal fell through after Austal’s management rejected the proposal.

Headquartered in Australia, Austal operates in the United States through its shipyard in Alabama.

Expanding its presence in the United States has become increasingly significant for Hanwha, especially with the Donald Trump administration emphasizing naval defense amid rising geopolitical tensions with China.

Following the announcement, shares of Hanwha affiliates climbed on the Kospi. As of 10:27 a.m., Hanwha was up 5.33 percent at 49,400 won, while Hanwha Systems gained 7.34 percent, Hanwhwa Aerospace inched upwards 0.13 percent and Hanwha Ocean rose 5.9 percent.

BY LEE JAE-LIM [[email protected]]