Hanwha to acquire US shipbuilder Philly Shipyard for $100 million

June 26 2024 Print This Article

Hanwha Systems and Hanwha Ocean announced the acquisition of Philly Shipyard, a leading U.S. shipbuilder that has delivered approximately half of the large U.S. Jones Act commercial ships in the United States since 2000. Hanwha Systems and Hanwha Ocean will together invest $100 million to acquire Philly Shipyard to further their strategies to expand their global defense and shipbuilding activities.

Philly Shipyard is a public company controlled by Aker ASA, a Norwegian industrial investment company with ownership interests in energy, green technologies, and marine biotechnology. Philly Shipyard produces vessels that are compliant with the Jones Act, a federal law that requires vessels used in domestic trade to be built in U.S. shipyards. Established in 1997, Philly Shipyard supplies around 50% of the largest U.S. commercial vessels, including tankers and container ships. In addition, Philly Shipyard constructs training vessels for the U.S. Maritime Administration (MARAD). 

“The opportunity to collaborate with Philly Shipyard, a significant shipbuilder with a storied history, is an exciting strategic opportunity that will allow Hanwha Systems to deploy its state-of-the-art naval systems and associated technologies in the U.S. market,” said Sung-Chul Eoh, CEO of Hanwha Systems.

“We look forward to leveraging our shipbuilding and manufacturing know-how in continuing the success of Philly Shipyard as it meets the expanding needs of the U.S. for decades to come,” added Hyek Woong Kwon, CEO of Hanwha Ocean.

Hanwha Systems is one of the leading defense companies in Korea, developing technologies for unmanned maritime systems, naval radars, and sensors for Manned and Unmanned Teaming (MUM-T) operations. With its cutting-edge marine technology, Hanwha Systems is eager to produce vessels in the commercial market and take advantage of opportunities in the unmanned underwater vehicles (UUVs), Smart Ship, and unmanned surface vehicles (USV) markets. Hanwha Ocean, a world-class shipbuilder pioneering the global marine defense market, has a full suite of low-carbon, high-tech vessels ranging from ammonia and LNG carriers to destroyers, submarines, and frigates.

Hanwha Systems and Hanwha Ocean see this acquisition as part of a long-term investment strategy that will bring best practices and leading technologies to complement existing Philly Shipyard capabilities.

“After two decades of stewardship, it is with great honor that we transition the ownership from Aker to Hanwha. Recognized as a global leader, Hanwha brings a wealth of sophisticated shipbuilding experience that will enable Philly Shipyard to realize a grander vision for its employees and customers. Reflecting on the past 17 years, I am personally grateful for the opportunity to have worked side by side the people of Philly Shipyard and eagerly anticipate witnessing the shipyard’s continued growth and success in the future,” said Kristian Røkke, Chairman of Philly Shipyard ASA.