Hanwha Ocean Sets Sails for Global Naval Dominance

Hanwha Ocean, a South Korean shipbuilder, aims to increase its overseas military vessel revenue to 4 trillion won by 2030 and strengthen collaboration with the U.S. Navy. Despite restrictions, the company is modernizing facilities to compete internationally and expand orders in markets like Poland, Canada, and Thailand.

South Korean shipbuilding giant Hanwha Ocean is setting ambitious targets to elevate its presence in the global naval market. By 2030, it aims to boost revenue from overseas military vessel contracts to approximately 4 trillion won, aided by strategic moves such as acquiring a U.S. shipyard and strengthening ties with the U.S. Navy, according to a senior executive's reports to Reuters.

The company's naval business has recently secured key repair orders from the U.S. Navy, marking a significant milestone. However, U.S. laws, specifically the Byrnes-Tollefson Amendment within the Department of Defense Appropriations Act, restrict foreign yards from constructing Navy ships, prompting Hanwha Ocean to pursue a U.S. license for shipbuilding. Modernization is also on their agenda, with plans to enhance American facilities, incorporating advanced South Korean technologies to reduce production times.

With a longstanding history of crafting submarines for South Korea's Navy, Hanwha Ocean is increasing capacity to simultaneously build more ships domestically while aggressively bidding for international projects in Europe and Asia. This strategy comes in response to changing domestic demand influenced by demographic shifts, positioning the company towards robust future global earnings.

(With inputs from agencies.)