ASB (ASX) ASB

Google translate of below website

https://www.sisaon.co.kr/news/articleView.html?idxno=161947

Hanwha embraces the U.S. ‘Philly Shipyard’… “We will continue to pursue the acquisition of Australia’s Austal.”

Hanwha chose the Philly shipyard as a bridgehead for entry into the U.S. naval and merchant ship market. Philly Shipyard is a shipyard ranked in the top 20 in the U.S. newbuilding and maintenance, repair, and overhaul (MRO) market. Hanwha plans to diversify its order portfolio by using the Philly Shipyard as a local production base in the future. Hanwha also continues its acquisition of the Australian shipyard Austal.

According to the industry on the 21st, Hanwha signed a contract on the 20th to acquire a 100% stake in the Philly Shipyard in Philadelphia, USA, through its subsidiaries Hanwha Systems and Hanwha Ocean. The acquisition amount is 100 million dollars (about 138 billion won).

With this acquisition, Hanwha takes its first step into the US shipbuilding sector. Furthermore, it is expected that sales will be able to increase in the U.S. ship MRO sector, where supply has recently become insufficient compared to demand.

Since Philly Shipyard is already a shipyard with competitiveness in receiving orders in the U.S. market, there are expectations that it will be able to increase synergy with Hanwha.

Shipbuilding platform Trusteddocks estimates that Philly Shipyard ranks 10th in competitiveness in the New Build sector and 18th in the Repair sector based on shipyards located in the United States.

In addition, Philly Shipyard has been supplying approximately 50% of large commercial ships, including PC ships and container ships, built in the United States since its establishment in 1997. It is explained that it also has strengths in the field of mid-sized oil tankers and container ships.

Hanwha plans to seek additional synergies by introducing Hanwha Ocean's eco-friendly ships, smart ship technology, and smart yard technology to the shipyard.

Meanwhile, Hanwha plans to continue to pursue the acquisition of the Austal Shipyard regardless of this agreement to acquire the Philly Shipyard. In order to secure a shipyard in the United States, Hanwha has been pursuing not only the acquisition of the Philly Shipyard but also the acquisition of Austal in Australia.

Although Austal is an Australian company, it has a shipyard in the United States. It is said to be a greedy acquisition in terms of dominance in the U.S. market. Austal's American shipyard ranks first in both newbuilding and repairs in the U.S. according to Trusted Dogs.

A Hanwha Ocean official said, “The Philly Shipyard was an acquisition that we had been considering in parallel even before the review of the acquisition of Austal, and we have recently decided on the acquisition as discussions with the seller have progressed. We are also continuing to consider the acquisition of Austal.” He said.

Source: Sisa Today (Sisa ON) (http://www.sisaon.co.kr)