- Investments support MASGA-linked shipbuilding, defence, and energy expansion.
- Hanwha Futureproof positioned as core U.S. investment vehicle.
- New Hanwha Defence & Energy to unify equity sharing among affiliates.
Hanwha Group has been busy ramping up its investments in various U.S. subsidiaries as part of its strategy to expand in the United States, reports Chosun Biz.
Additional Capital for Key U.S. Subsidiaries
On the 24th, Hanwha Systems revealed its intention to purchase an additional 29,070 shares of its U.S. subsidiary, Hanwha Systems USA, for a whopping 427.9 billion won. They’re also looking to acquire 60,000 more shares of HS USA Holdings, the management company for their U.S. subsidiaries, for 88.3 billion won.
Meanwhile, Hanwha Ocean plans to invest 502.0 billion won to buy 3,410 additional shares in Hanwha Ocean USA, and Hanwha Solutions is set to put in 285.3 billion won for 193,800 extra shares in Hanwha Qcells Americas Holdings, their solar energy solutions arm in the U.S.
Strategy Tied to MASGA and U.S. Market Expansion
These investments are part of Hanwha Group’s broader strategy to tap into the “MASGA (Make American Shipbuilding Great Again)” initiative, which focuses on enhancing Korea-U.S. cooperation in shipbuilding. The goal is to expand their footprint in various sectors, including maritime, defence, and energy.
Role of Hanwha Futureproof in the Expansion
At the heart of these initiatives is Hanwha Futureproof, a U.S. investment company that was set up in 2023 as a joint venture between Hanwha Aerospace and Hanwha Solutions, aimed at overseas equity acquisitions and mergers & acquisitions. Hanwha Solutions will be transferring its stake in Hanwha Futureproof to a newly established entity called Hanwha Defence & Energy.
Following this, the U.S. subsidiaries of Hanwha Systems, Hanwha Ocean, and Hanwha Solutions will invest in Hanwha Defence & Energy using the funds raised from the recent capital increases. The significant capital generated through the new share issuance by Hanwha Defence & Energy will be directed into Hanwha Futureproof to support its business operations.
Group-Level Synergy in U.S. Market Entry
A Hanwha Group official said, “With the expansion of the business scope of the U.S. investment company Hanwha Futureproof, Hanwha Systems, Hanwha Ocean, and Hanwha Solutions, which have entered the U.S. through Philly Shipyard, are participating together in the business.”
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Source: Chosun Biz
