Hanwha Ocean Invests 2 Trillion Won... Focus on Securing Overseas Bases for 'Global Maritime Defense'

Resolution of Paid-in Capital Increase at the Board Meeting on the 23rd
"Achieving 30 Trillion KRW in Sales and 5 Trillion KRW in Operating Profit by 2040"

Vice Chairman Kim Dong-kwan is visiting the Hanwha Ocean booth at MADEX (International Maritime Defense Industry Exhibition), observing the displayed surface ships and receiving explanations. Photo by Hanwha Ocean

Hanwha Ocean is securing future growth engines through an investment worth around 2 trillion KRW. The company aims to establish a global-level 'super-gap defense' solution in its existing stronghold of naval vessels and maximize profitability in the eco-friendly energy business through synergy with group affiliates.

On the 23rd, Hanwha Ocean's board of directors resolved a paid-in capital increase of approximately 2 trillion KRW and announced a strategy to achieve "30 trillion KRW in sales and 5 trillion KRW in operating profit" by 2040, aspiring to become a "Global Ocean Solution Provider" leading the paradigm of the future marine industry.

With the funds secured this time, Hanwha Ocean will establish overseas bases for marine defense expansion and make large-scale investments to acquire eco-friendly fuel-based propulsion systems, eco-friendly carriers, and autonomous ship technologies.

This paid-in capital increase will be conducted through a rights offering followed by a general public subscription for any unsubscribed shares. The new share allocation date is November 25, with subscription for existing shareholders taking place over two days from November 8. The general public subscription period is from November 13 to 14.

Overseas Production Bases, Unmanned and Advanced Naval Technology Acquisition... Building 'Super-Gap Defense' Infrastructure

Hanwha Ocean will allocate about 900 billion KRW of the secured funds to establish overseas production bases along with unmanned and advanced technologies to respond to global security demands. The goal is to build a 'super-gap defense' infrastructure to enter the global marine defense market centered on the U.S. and Europe.

Due to increased defense budgets amid geopolitical crises, the global naval vessel market is expected to reach approximately 986 billion USD (about 1,320 trillion KRW) cumulatively over the next decade. Hanwha Ocean plans to rapidly advance as a global marine defense company by entering the submarine and surface ship market worth about 243 billion USD (approximately 325 trillion KRW).

With large-scale next-generation submarine projects underway in North America and Europe, including Canada, the Netherlands, and Poland, Hanwha Ocean plans to combine Hanwha Aerospace's submarine ESS (Energy Storage System) and Hanwha Systems' unmanned combat systems to secure world-class competitiveness and expand into overseas MRO (Maintenance, Repair, and Overhaul) businesses in the future.

Development of Eco-Friendly and Digital Ships... Full-Scale Entry into Offshore Wind Power Business

Hanwha Ocean is also actively responding to the demand for eco-friendly products and technologies driven by strengthened global environmental regulations.

About 600 billion KRW of the funds raised through this capital increase will be invested to develop 'eco-friendly propulsion systems' based on ammonia, methanol, and hydrogen, as well as ammonia, carbon dioxide, and hydrogen carriers. Additionally, by 2030, the company plans to secure smart ship technology capable of 'Level 4' fully autonomous navigation to lead the future shipbuilding market. Hanwha Ocean will also invest approximately 200 billion KRW to enter the global offshore wind power market, which is growing at an annual rate of 18%, focusing on Europe, the U.S., and Asia.

Hanwha Ocean Geoje Plant Overview. Photo by Hanwha Ocean

By actively leveraging the group's energy development capabilities, Hanwha Ocean plans to provide total offshore wind power services, including development of offshore wind power projects, manufacturing, transportation, installation, and maintenance of offshore wind installation vessels, substructures, and offshore substations.

Hanwha Ocean is also striving to secure overwhelming competitiveness for sustainable growth in the existing shipbuilding sector. About 300 billion KRW will be invested to build an automation-based 'smart yard' to enhance safety and address the decline in skilled labor due to demographic changes. Specifically, the plan includes ▲ increasing productivity through robotics and automation and ▲ transforming the entire shipyard into a massive big data-based smart yard through smart factories and logistics automation.

Kwon Hyuk-woong, CEO of Hanwha Ocean, said, "Through this large-scale investment, we will not only maximize the fundamental competitiveness of shipbuilding but also become a global innovative company that offers solutions to the security and climate crises faced worldwide by leading the paradigm shift in the future marine industry."

This content was produced with the assistance of AI translation services.