On September 5, Hanwha Ocean announced that it has signed a contract with a North American shipping company to build one liquefied natural gas (LNG) carrier worth 351.2 billion won (approximately $252 million), with delivery scheduled for March 31, 2028.
Reports indicate that Hanwha Ocean disclosed in its announcement only that the shipowner was a “North American shipping company.” However, as more information has come to light, the shipowner has been identified as an affiliate of Hanwha Ocean in North America. Consequently, this contract signing has been confirmed to be deeply connected to Hanwha Group’s investment in the U.S. shipbuilding industry.
Since July this year, Hanwha Shipping, the U.S. subsidiary of Hanwha Group, has placed orders for 12 new vessels of two types at Hanwha Philly Shipyard, including two LNG carriers and ten MR product tankers. The first MR product tanker is scheduled for delivery in 2029 and will support the renewal of the U.S. Jones Act fleet and other strategic initiatives.
As previously reported, Hanwha Philly Shipyard will utilize a joint construction model for the LNG carrier project, with Hanwha Philly Shipyard signing the main shipbuilding contract and collaborating with Hanwha Ocean to execute the project. While a “substantial portion” of the construction work will be performed at Hanwha Ocean’s Geoje shipyard in South Korea, Hanwha Philly Shipyard will be responsible for U.S. regulatory compliance and safety certification.
Hanwha Group plans to transfer LNG carrier construction technology from South Korea to the U.S. through a collaboration between Hanwha Ocean and Hanwha Philly Shipyard.
In this regard, Hanwha Impact Partners, a U.S. investment company under Hanwha Group, has sold all of its remaining shares in Hanwha Ocean, accounting for approximately 4.27%, equivalent to approximately 13 million shares of the company’s total share capital, raising approximately US$1 billion. It plans to use the proceeds for the Korea-U.S. shipbuilding cooperation project MASGA and for repaying debts to improve its financial structure.
When acquiring Hanwha Ocean in 2023, Hanwha Impact Partners initially held a 9% stake in the shipbuilder. Hanwha Group currently retains a 42% stake in Hanwha Ocean and maintains management control over the company. The timing of this share sale is opportune: Hanwha Ocean’s stock price has surged 250% since last year. However, the company’s stock price declined following the announcement of the share sale.
By the end of 2024, Hanwha Group acquired Hanwha Philly Shipyard from Norway’s Aker for $100 million and renamed it Hanwha Philly Shipyard.
In late August, Hanwha Group announced a $5 billion investment to expand capacity at Hanwha Philly Shipyard, boosting annual production from less than two vessels to 20 by the 2030s. This marks the first major investment under the MASGA program—a Korea-U.S. shipbuilding cooperation initiative through which South Korea plans to invest $150 billion in the U.S. shipbuilding industry.