Following the mandatory takeover of Singaporean offshore company Dyna-Mac, Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering, DSME), one of South Korea’s “ giant” shipbuilders, has announced that it will dissolve an offshore joint venture between Dyna-Mac and China Merchants Heavy Industry (CMHI), marking a shift to a Singapore-centered global production structure and a reduction in direct operations in China.
South Korean media reported that the joint venture to be dissolved is called DM-CMHI Heavy Industry (Jiangsu) Co., Ltd.
Public information shows that DM-CMHI Heavy Industry (Jiangsu) was established in 2020 with a registered capital of US$1.5 million. CMHI and Dyna-Mac’s Shanghai subsidiary invested US$735,000 and US$765,000 respectively, holding 49% and 51% of the shares respectively. The joint venture targets the Chinese mainland market and is mainly engaged in offshore equipment upper modules and integration, turrets, onshore module-related businesses and other procurement, construction and operation and maintenance businesses.
At its inception, with Dyna-Mac’s engineering strengths and CMHI Heavy Industry’s shipbuilding facilities in Jiangsu, DM-CMHI Heavy Industry (Jiangsu) has made several deliveries of FPSO modules and has been awarded a contract for the construction of the topside module worth S$114 million in 2021.
It is worth noting that the termination of the joint venture with CMHI in China has been confirmed by Philippe Levy, President of Hanwha Ocean’s marine business, who said that “the cooperation with CMHI was a strategic move by the previous management of Dyna-Mac. With the completion of the acquisition of Dyna-Mac by Hanwha Group and under the leadership of the new management, Hanwha Ocean Singapore (i.e. Dyna-Mac) is currently reviewing all existing partnerships and alliances to ensure that they are aligned with the development goals and strategic direction of Hanwha Group.”
According to another industry insider, “DM-CMHI Heavy Industry (Jiangsu) has been in name only for a long time. Therefore, we are not surprised by the dissolution.”
Dyna-Mac, which announced the joint venture with CMHI, was established in 1990 and specializes in the engineering design, procurement, construction, onshore pre-commissioning and trial operation of offshore modules and units such as FPSO, FSO, FLNG and FSRU, with two shipyards in Singapore.
In November 2024, Dyna-Mac was compulsorily acquired by Hanwha Group and planned to be delisted; in early 2025, Hanwha Group renamed it Hanwha Offshore Singapore (HOS). Hanwha Group believes that this move will help achieve synergies and intends to use it as a springboard to expand into the Southeast Asian market. While maintaining the original characteristics of Dyna-Mac, it is committed to investing in new technologies and operational capabilities to expand its Asian business.
After acquiring the management of Dyna-Mac, Hanwha Group plans to have the hull portion of the offshore order built at Hanwha Offshore Geoje Shipyard, while the topside module will be built at Dyna-Mac, in order to enhance the construction efficiency and expand the production capacity.
This acquisition will help strengthen Hanwha Group’s multi-shipyard strategy in South Korea, the United States and Singapore. Its shipbuilding subsidiary, Hanwha Ocean, will utilize the Singapore shipyard and its shipbuilding bases in South Korea and the United States to improve production efficiency and technical capabilities and strengthen its influence in Southeast Asia and the global market.