As Hanwha Group vigorously expands into the U.S. market, South Korean industry analysts predict this expansion will center on Hanwha Systems and Hanwha Ocean, with a primary focus on marine sector investments. The group may also pursue acquisitions of U.S. shipyards.
Hanwha Group announced on the 25th that its subsidiaries Hanwha Systems, Hanwha Ocean, and Hanwha Solutions issued statements on the 24th declaring they would each increase their equity stakes in their respective U.S. subsidiaries. The investment amounts for the three companies are 516.2 billion won, 502 billion won, and 285.3 billion won, respectively, totaling 1.3035 trillion won (approximately $893 million).
The U.S. subsidiaries of Hanwha Systems, Hanwha Ocean, and Hanwha Solutions plan to inject the raised funds into a newly established entity—Hanwha Defense & Energy. The pooled capital will subsequently be invested across multiple sectors through the Hanwha Future Loop fund.
It is reported that Hanwha Future Loop is a company jointly established in the United States in 2023 by Hanwha Aerospace and Hanwha Solutions, responsible for overseas corporate mergers and acquisitions and new business investments. Of the funds being invested, approximately 1 trillion won is expected to flow into this company.
Previously, Hanwha Aerospace and Hanwha Solutions had invested in the U.S. through the Hanwha Future Loop. This marks the first time Hanwha Systems and Hanwha Ocean have joined the ranks of investors.
Hanwha Group plans to prioritize the use of these funds for expanding investments in the marine sector, leveraging the “MASGA” project to gradually advance into related industrial fields.
Currently, Hanwha Systems and Hanwha Ocean jointly hold equity in Hanwha Philly Shipyard, which serves as the core base for Hanwha Group’s “MASGA” project. Consequently, the shipyard will be the primary focus of this investment round. Hanwha Systems plans to leverage this opportunity to enter the U.S. shipping market, aiming to apply its diverse transportation and security solutions—suitable for both commercial vessels and naval ships—to vessels constructed in the U.S..
A Hanwha Systems representative stated: “Hanwha Future Loop’s existing investment portfolio spans battery energy storage systems (BESS), LNG infrastructure, eco-friendly energy and shipping. With the addition of Hanwha Systems and Hanwha Ocean, the proportion of investments in the shipping sector is expected to increase significantly.”
Hanwha Ocean, one of South Korea’s top three shipbuilders, not only engages in commercial and specialized vessel operations but also ventures into energy and power generation. Its business activities are directly aligned with all investment directions of Hanwha Future Loop. A Hanwha Group official emphasized: “Hanwha Ocean is the business entity capable of generating the greatest synergies with Hanwha Future Loop. Future collaboration will extend to shipbuilding at Hanwha Philly Shipyard and other related fields.”
Based on this substantial investment and Hanwha Group’s development strategy, South Korean industry insiders predict that Hanwha Future Loop may subsequently launch large-scale M&A initiatives in the United States, with domestic American shipyards likely becoming its primary targets.
In late 2024, Hanwha Group acquired the Philly Shipyard in the United States for approximately $100 million and renamed it Hanwha Philly Shipyard. Since then, it has consistently expressed its intention to acquire more local shipyards. Hanwha Future Loop is currently recruiting M&A talent at its New York headquarters, further supporting these predictions.
A Hanwha Group official stated: “In addition to independently expanding into the U.S. market, each subsidiary will share in the profits generated by Hanwha Future Loop, in which the group holds equity. From a macro perspective, the group’s entry into and investment in the U.S. market will represent a comprehensive strategic deployment.”