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Hanwha revamps US investment arm for defense push

Daniel Kim Views  

Hanwha Group's headquarters in central Seoul (Hanwha Group)Hanwha Group is overhauling its US investment structure as it accelerates expansion in the American defense and shipbuilding markets, particularly under the Make American Shipbuilding Great Again or MASGA initiative.

Hanwha Systems and Hanwha Ocean — the joint owners of Philly Shipyard — said in regulatory filings Monday that they would invest a combined 1.01 trillion won ($690 million) to set up a new US holding company called Hanwha Defense and Energy, together with Hanwha Solution.

The new entity will acquire a 50 percent stake in Hanwha Futureproof, the group’s US investment arm, for 1.14 trillion won. That stake is currently held by Hanwha Solution, Hanwha’s energy business.

Hanwha Futureproof was established in 2023 as a 50:50 joint venture between Hanwha Aerospace and Hanwha Solution to identify and acquire promising US assets in defense and energy.

Under the new structure, Hanwha Systems and Hanwha Ocean will jointly hold 37.5 percent of Futureproof once the transaction closes. Because both are subsidiaries of Hanwha Aerospace, their entry effectively shifts strategic control of the investment unit toward the group’s defense arm.

Hanwha Solution will buy back part of its stake through Hanwha Defense and Energy, but its overall influence will shrink to 12.5 percent, down from 50 percent today.

A Hanwha Group official said the changes are intended to “broaden Futureproof’s investment capabilities as the group expands further into the US market.”

Daniel Kim
content@viewusglobal.com

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