Hanwha finally takes USD 1.2 billion punt on Austal USA
Like in Philadelphia, pictured, a crane painted in Hanwha colours could eventually be seen over Austal, Alabama (Source: Hanwha)
South Korean multinational Hanwha Group has submitted a preliminary offer of up to USD 1.2 billion (EUR 1.03 billion) for Austal USA, potentially giving the company control of one of the most strategically important naval shipyards in the US.
The non-binding proposal was submitted through Hanwha Defense USA and relates to Austal's shipbuilding operations in Mobile, Alabama. Austal has granted Hanwha a four-week due diligence period, including discussions with key US Government stakeholders and customers.
Any transaction would be expected to face close regulatory scrutiny because of Austal USA's role in sensitive defence programmes. The yard undertakes work for the US Navy and Coast Guard, including the production of modules for the Virginia-class and Columbia-class submarine programmes.
If completed, the acquisition would significantly expand Hanwha's presence in the US maritime sector. The company acquired Philly Shipyard for USD 100 million (EUR 86 million) in December 2024 and has since identified the facility as a cornerstone of its US shipbuilding strategy.
Hanwha's interest in Austal forms part of a wider effort by South Korean shipbuilders to establish a stronger foothold in the US market. HD Hyundai has partnered with Tampa Ship, part of Edison Chouest Offshore, to pursue LNG dual-fuel containership construction and has expanded cooperation with Huntington Ingalls Industries on naval shipbuilding and maintenance programmes.
Samsung Heavy Industries has also entered the market through a partnership with Portland, Oregon-based Vigor Marine Group, initially targeting naval maintenance, repair and overhaul work.
The proposed acquisition aligns with South Korea's broader strategy to support US shipbuilding capacity through investment, technology transfer and industrial cooperation. A Korea-US shipbuilding partnership centre was opened in Washington earlier this year to support these initiatives and facilitate collaboration between the two countries' maritime industries.
