Hanwha Systems and Hanwha Ocean has completed its $100 million acquisition of Philly Shipyard, clearing the way for the South Korean defense company to begin U.S.-based shipbuilding operations.
According to a company announcement, Hanwha received Committee on Foreign Investment in the United States (CFIUS) approval in September, clearing the last hurdle in the acquisition process. The Philadelphia-based yard will be renamed Hanwha Philly Shipyard, the announcement adds.
Hanwha executive David Kim, who previously served as executive vice president for Hanwha Defense U.S.A. and was involved in the acquisition, will take over as chief executive officer of the shipyard to guide it through the transition, the notice states.
“We plan to grow and build on a long tradition of success, by expanding production using advanced technologies, and supporting the national revitalization of U.S. shipyards,” Kim said in a statement included in the release.
“Together, we begin working toward our vision for Hanwha Philly Shipyard: to be a trusted U.S. shipbuilder, challenging and redefining sustainable maritime solutions for commercial and government clients,” Kim’s statement continues. “We intend to do that by pushing the boundaries of shipbuilding by combining people with technology to build best-in-class vessels.”
Hanwha announced it had reached a purchase agreement to buy the yard from Norwegian investment group Anker ASA in June. The acquisition was endorsed by Navy Secretary Carlos Del Toro, who has encouraged foreign investment as a means of rejuvenating a struggling domestic industrial base.
Philly Shipyard sits on the site of the Navy’s former Philadelphia Naval Shipyard, which was closed in 1996. The yard has been operating under private ownership since 1997, primarily building commercial cargo ships.
In October, Mike Smith, the current president and CEO of Hanwha Defense U.S.A., said the company aims to take on module fabrication work for Navy ship and submarine programs at Philly Shipyard, indicating module work is the first step in building a relationship with the Navy and growing U.S. business.