As Hanwha Group moves to expand its U.S. business with 1 trillion won in firepower, expectations are that investment will center on the maritime sector, led by Hanwha Systems and Hanwha Ocean. Using the "MASGA (Make American Shipbuilding Great Again)" project, a Korea-U.S. shipbuilding cooperation program, as a springboard, the group plans to push into related upstream and downstream industries. Large-scale mergers and acquisitions (M&A) targeting local shipyards are also being discussed.
According to Hanwha Group on the 25th, Hanwha Systems, Hanwha Ocean and Hanwha Solutions said in disclosures on the 24th that they would each purchase additional equity in their U.S. subsidiaries. Hanwha Ocean and Hanwha Systems invested 516.2 billion won and 502 billion won, respectively, and Hanwha Solutions invested 285.3 billion won.
The subsidiaries contributed the cash secured in this way to a newly established entity, Hanwha Defense & Energy. The funds pooled at Hanwha Defense & Energy will later be invested across several fields through Hanwha Futureproof.
Hanwha Futureproof is a corporations jointly established in the United States in 2023 by Hanwha Aerospace and Hanwha Solutions, responsible for overseas mergers and acquisitions (M&A) and new business investments.
Of the funds injected this time, the amount that falls under Hanwha Futureproof's control is estimated at 1 trillion won. Hanwha Aerospace and Hanwha Solutions had already been investing in the United States through Hanwha Futureproof, but Hanwha Systems and Hanwha Ocean newly joined the roster of investors this time.
Hanwha Group is expected to first increase investment in the maritime sector with these funds. Using the "MASGA (Make American Shipbuilding Great Again)" project as a starting point, the group plans to enter various related industries.
Hanwha Systems and Hanwha Ocean stand at the center of investment, as they share equity in the Philly Shipyard, the key hub of MASGA. Hanwha Systems plans to use this opportunity to explore entry into the U.S. shipping business. Hanwha Systems has various transport and security solutions that can be mounted on commercial and naval vessels, and its goal is to apply them to ships built in the United States.
A Hanwha Systems official said, "Hanwha Futureproof's existing investment areas were battery energy storage systems (BESS), liquefied natural gas (LNG) infrastructure, eco-friendly energy and shipping, but with the participation of Hanwha Systems and Hanwha Ocean, the share of investment in shipping is expected to increase."
For Hanwha Ocean, which has commercial and special-purpose vessels as well as power generation operations, every investment direction of Hanwha Futureproof is directly connected. A Hanwha Group official said, "The place that can see the greatest synergies with Hanwha Futureproof's business is Hanwha Ocean," adding, "We will collaborate with Hanwha Ocean in various areas, including shipbuilding at Philly Shipyard."
In addition, group capabilities are expected to be deployed to help Hanwha Aerospace enter the U.S. defense market. Hanwha Aerospace has not yet won orders in the United States. In response, Hanwha Group plans to add defense to Hanwha Futureproof's business scope and explore U.S. market entry for Hanwha Aerospace's flagship products such as the K-9 self-propelled howitzer and the Cheonmu multiple launch rocket system.
There are also expectations that Hanwha Futureproof will pursue large-scale M&A. The most prominent acquisition targets are shipyards. Hanwha Group acquired Philly Shipyard for $100 million (about 150 billion won) in Dec., and has since repeatedly said it is willing to purchase additional local shipyards. The fact that Hanwha Futureproof is hiring M&A specialists to work at its headquarters in New York also adds weight to this view.
A Hanwha Group official said, "Each affiliate, in addition to its own entry into the U.S. market, will also share in the revenue of Hanwha Futureproof, in which they hold equity," adding, "On a broader level, entry into and investment in the U.S. market will proceed across the board."