Hanwha Restructures US Operations, Injects 1 Trillion Won Ahead of MASGA Initiative

(Seoul=Yonhap Infomax) Su Jin Yoo = Hanwha Group, one of South Korea's leading chaebol (family-owned conglomerates), has announced a major restructuring of its US operations, committing over 1 trillion won ($845 million) in fresh capital to accelerate its expansion in the United States.

Hanwha Ocean Co. and Hanwha Systems Co., both key affiliates, will join Hanwha Futureproof, the group's US investment vehicle, as shareholders. This move aims to broaden Hanwha's US business portfolio beyond defense and energy into shipbuilding, marine, and information technology (IT), in line with the MASGA (Make American Shipbuilding Great Again) initiative, which underscores US-Korea cooperation in shipbuilding and related sectors.

On the 24th, Hanwha Solutions Corp. disclosed that it will transfer its 50% stake in Hanwha Futureproof to Hanwha Defense & Energy, a US-based entity established by Hanwha Ocean and Hanwha Systems to spearhead their American market entry. The transaction is valued at 1.1407 trillion won ($965 million), with the stated purpose of realigning the group's business and investment portfolio.

Despite the stake transfer, Hanwha Solutions will maintain its connection to Hanwha Futureproof by investing 285.3 billion won ($241 million) into Hanwha Defense & Energy via its US subsidiary, Hanwha Q CELLS Americas Holdings. The new ownership structure will shift from Hanwha Solutions holding a direct 50% stake to an indirect stake through a chain of subsidiaries: Hanwha Solutions → Hanwha Q CELLS Americas Holdings → Hanwha Defense & Energy → Hanwha Futureproof.

Hanwha Defense & Energy is a US subsidiary jointly controlled by Hanwha Ocean and Hanwha Systems. Hanwha Ocean exercises control through Hanwha Ocean USA Holdings and Hanwha Ocean USA Investment, while Hanwha Systems does so via Hanwha Systems USA. With Hanwha Solutions joining, Hanwha Defense & Energy will have three shareholders: Hanwha Ocean, Hanwha Systems, and Hanwha Solutions.

Simultaneously, Hanwha Futureproof's shareholder base will expand from two—Hanwha Aerospace Co. (50%) and Hanwha Solutions (50%)—to four, with Hanwha Ocean and Hanwha Systems joining. Hanwha Aerospace's stake remains unchanged, while Hanwha Solutions' portion is assumed by Hanwha Defense & Energy.

This restructuring is designed to expand Hanwha Futureproof's US investment focus from defense and energy into shipbuilding, marine, and IT. Hanwha Ocean and Hanwha Systems are already active in the US shipbuilding and marine sectors, and both hold stakes in Hanwha Philly Shipyard, acquired by Hanwha. The overhaul comes as the US-Korea tariff negotiations conclude, positioning Hanwha as a key player in the MASGA initiative, which aims to revitalize American shipbuilding through bilateral cooperation.

In tandem with the restructuring, Hanwha will inject approximately 1.15 trillion won ($973 million) into Hanwha Defense & Energy to bolster Hanwha Futureproof's competitiveness in the US market. Specifically, Hanwha Solutions will contribute 285.3 billion won ($241 million), while Hanwha Ocean and Hanwha Systems will participate in a rights offering by Hanwha Defense & Energy. Given the multiple US subsidiaries involved, a series of domino-style capital increases is planned.

A Hanwha official stated, "We are expanding Hanwha Futureproof's business scope from defense to shipbuilding, marine, and IT. With this restructuring, Hanwha Systems and Hanwha Ocean will also become shareholders of Hanwha Futureproof."

Additionally, Hanwha Philly Shipyard will conduct a 147.2 billion won ($124 million) rights offering for its shareholders, HS USA Holdings (a Hanwha Systems subsidiary) and Hanwha Ocean USA International (a Hanwha Ocean sub-subsidiary), to raise facility funds.

sjyoo@yna.co.kr

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