Hanwha Ocean to invest $1.5 bn in defense sector, shipbuilding technologies

[Photo by Yonhap]

South Korea’s Hanwha Ocean Co. has unveiled plans to invest a total of 2 trillion won ($1.5 billion) across various sectors such as eco-friendly ships, offshore wind power, and smart processes, all aimed at ensuring sustainable growth in the future.

On Wednesday, the company announced its decision to raise 2 trillion won through a capital increase to finance these investments. Company officials emphasized that this capital increase will not be used for financial restructuring purposes, including debt repayment.

Out of the 2 trillion won, Hanwha Ocean plans to allocate 900 billion won to secure overseas naval factories and advanced defense technologies. This strategic move is intended to expand its presence in the global naval defense market, estimated to be worth around 1,320 trillion won over the next decade. Hanwha Ocean’s potential involvement in the submarine and surface ship market is estimated to be around 325 trillion won.

Particularly noteworthy is Hanwha Ocean’s approach to upcoming submarine projects in countries like Canada, Poland, and the Netherlands. The company plans to combine its naval technology with that of Hanwha Group affiliates, aiming to secure a world-class competitive edge in these projects.

Another significant portion, 600 billion won, will be dedicated to research and development of future ship technologies, focusing on environmentally friendly propulsion systems powered by carbon-reducing fuels like ammonia, methanol, and hydrogen.

Hanwha Ocean will also invest 200 billion won in the global offshore wind power business. Leveraging the energy business capabilities of Hanwha Group, the company plans not only to develop offshore wind power projects but also to provide services such as offshore wind installation vessels, substructure construction, and offshore substation installation.

The company also allocated 300 billion won for the transformation of its shipyard into a smart shipbuilding facility. This project aims to enhance labor productivity through the integration of robots and automated equipment.

Amid the challenges posed by a declining workforce, Hanwha Ocean is committed to introducing smart processes across its shipyard, including logistics automation.

“Beyond maximizing the intrinsic competitiveness of the shipbuilding industry through significant investments, we aim to become an innovative company that offers solutions for national security and addresses the climate crisis,” said Kwon Hyuk-woong, CEO of Hanwha Ocean.