Hanwha Group to realign business by splitting off secondary battery division

[Courtesy of Hanwha Group]

South Korea’s Hanwha Group will split off Hanwha Corp.’s secondary battery business into a new subsidiary as part of a management reorganization aimed at reducing operational costs and concentrating resources into competitive segments.

Hanwha Group disclosed on Wednesday that it will split off Hanwha’s Momentum division and establish Hanwha Momentum as a subsidiary.

Hanwha Momentum, wholly owned by Hanwha, will be responsible for secondary battery equipment and information technology solution business.

As part of an effort to protect shareholder value, Hanwha Momentum will not go public for at least five years.

Currently, the Momentum division is equipped with facility lineup for battery material processing and electrode, assembly, formation, and module pack processing.

Hanwha Group also has plans to boost marine and solar power business capacity by handing over some of Hanwha’s businesses to other subsidiaries.

The solar power equipment business under the Momentum division will be handed over to Hanwha Solution Co.

Hanwha Ocean Co. also plans to invest a total of 402.5 billion won ($298 million) to acquire the offshore wind power and plant construction business from Hanwha, which will enable the shipbuilding company to secure the expertise, procurement channels, construction capabilities, and workforce that the divisions have amassed in the offshore wind power sector.