Hanwha Ocean Invests 2 Trillion Won... Expanding Sales Share to 40% in Defense and Wind Power (Comprehensive)

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

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

Hanwha Ocean announced that it will secure future growth engines in defense and offshore wind power through large-scale investments and expand the sales proportion of these businesses to over 40%.

At a corporate briefing on the 23rd, Hanwha Ocean stated, "Due to the effect of entering the overseas defense business, sales in the special ship sector, which accounted for about 10% of the company's total sales last year, are expected to grow to around 25% by 2040," adding, "By 2040, the sales proportion of new businesses such as offshore wind power and the special ship business will expand to 41%." Until now, shipbuilders' sales have been concentrated in the merchant ship sector, accounting for well over 80%. Hanwha Ocean aims to break this structure and pursue a portfolio diversification strategy.

At a board meeting held the previous day, Hanwha Ocean resolved a paid-in capital increase of about 2 trillion won and set a goal to achieve "30 trillion won in sales and 5 trillion won in operating profit by 2040." With the funds secured this time, Hanwha Ocean will establish bases for overseas expansion of marine defense, and make large-scale investments to secure eco-friendly fuel-based propulsion systems, eco-friendly transport ships, and autonomous ship technologies.

Of the funds secured, about 900 billion won will be used to respond to global security demands by acquiring unmanned and advanced technologies as well as overseas production bases. The company plans 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 warship market is expected to reach approximately $986 billion (about 1,320 trillion won) cumulatively over the next 10 years. Hanwha Ocean's strategy is to enter the submarine and surface ship market worth about $243 billion (about 325 trillion won) and rapidly leap forward as a global marine defense company.

Hanwha Ocean Geoje Plant Overview. Photo by Hanwha Ocean

With large-scale next-generation submarine projects already 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.

Hanwha Ocean is also actively responding to the demand for eco-friendly products and technologies due to strengthened global environmental regulations. About 600 billion won of the funds raised through this paid-in capital increase will be invested to develop 'eco-friendly propulsion systems' based on ammonia, methanol, and hydrogen, as well as to develop ammonia, carbon dioxide, and hydrogen transport ships.

The company is also challenging the offshore wind power market. Hanwha Ocean will invest about 200 billion won to enter the global offshore wind power market, which is growing at an annual rate of 18%, centered on Europe, the U.S., and Asia. By actively utilizing the group's energy development capabilities, it 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. Kwon Hyuk-woong, CEO of Hanwha Ocean, said, "Through this large-scale investment, we will not only maximize the fundamental competitiveness of the shipbuilding industry but also become a global innovative company that offers solutions to the security and climate crises faced worldwide through a paradigm shift in the future marine industry."

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