- The U.S. government has cleared Hanwha to increase its stake in Australian shipbuilder Austal up to 100%, with no national security concerns raised by CFIUS.
- Hanwha plans to grow its equity stake in Austal from 9.9% to a strategic 19.9%, pending approval from Australia’s Foreign Investment Review Board.
- The move supports Hanwha’s ambition to transfer advanced shipbuilding technologies from Korea to the U.S. and Australia, reinforcing allied defense capabilities.
South Korean defense and aerospace giant Hanwha has received key regulatory approval from the Committee on Foreign Investment in the United States (CFIUS) to increase its shareholding in Austal Limited. CFIUS concluded there are no unresolved national security concerns with Hanwha’s proposed investment, effectively giving the green light for the company to raise its stake up to 100%. This decision signals strong support from the U.S. government and highlights confidence in Hanwha’s track record of international defense collaboration.
Strategic Expansion of Stake in Austal
Hanwha intends to expand its current 9.9% equity position in Austal to a strategic 19.9%. The company has also submitted an application to Australia’s Foreign Investment Review Board (FIRB) for approval. The investment is positioned as a means of strengthening Austal’s capabilities and giving it access to Hanwha’s capital, global partnerships, and cutting-edge shipbuilding expertise.
U.S. Support for Technology Transfer and Defense Collaboration
Michael Coulter, CEO & President of Hanwha Aerospace and Hanwha Global Defense, welcomed the CFIUS outcome, calling it an important milestone that reflects the depth of support from U.S. government stakeholders. He emphasized that Hanwha’s proven ability to collaborate with allied partners, meet delivery deadlines, and execute large-scale projects makes it a trusted contributor to U.S. shipbuilding efforts. Coulter also noted growing interest from the U.S. in adopting Hanwha’s technology and production methodologies to revitalize domestic shipbuilding.
Strengthening Austal and Allied Defense Capabilities
By deepening its partnership with Austal, Hanwha aims to contribute to the development of both Australian and U.S. defense industries. With its experience in smart shipbuilding, Hanwha is expected to complement Austal’s operations and enhance its global competitiveness. The investment comes at a time when building sovereign defense capabilities is a strategic priority for many nations, including Australia.
Hanwha is South Korea’s seventh-largest business conglomerate, with operations spanning aerospace, clean energy, ocean solutions, finance, retail, and more. As a multinational organization with a strong global affiliate network, Hanwha leverages innovation and synergy across its divisions to drive sustainable growth and deliver transformative technologies. Its contributions across various sectors continue to improve lives and strengthen industrial capabilities worldwide.
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Source: Hanhwa
