Hanwha completes $100 mn acquisition of US firm Philly Shipyard

The acquisition was finalized six months after signing a contract with Norway's Aker ASA, the parent company, in June. Hanwha Ocean Co. and Hanwha Systems Co. jointly undertook the acquisition.

Philly Shipyard was established in 1997 on the site of a former U.S. Navy shipyard in Philadelphia. It has been newly named Hanwha Philly Shipyard, Yonhap news agency reported.

The shipyard specialises in constructing coastal transport vessels and has supplied approximately 50 per cent of large commercial vessels subject to the US Jones Act, including petrochemical carriers and container ships.

The shipyard also has a proven track record in projects such as constructing multipurpose training ships for the U.S. Maritime Administration.

Hanwha Philly Shipyard plans to create a significant number of local jobs, expand the yard's capabilities and scale into new markets, the group said.

Meanwhile, the shipyard industry of the US is willing to work with its South Korean counterpart to improve efficiencies, a US shipbuilders' trade group said last month, as US President-elect Donald Trump seeks closer bilateral ties in the sector.

Paula Zorensky, vice president of the Shipbuilders Council of America (SCA), said American shipyards "are willing to work with our fellow South Korean shipbuilders and allied shipyards to improve our processes and increase efficiencies."

"US shipyards have long encouraged input and investment in our facilities and are willing to work with our fellow South Korean shipbuilders and allied shipyards to improve our processes and increase efficiencies," she added.

South Korean shipyards, a leading force in the global shipbuilding industry, appear upbeat over potential opportunities to expand their business in America after Trump's reelection.

Hanwha Ocean recently secured two MRO contracts with the US Navy for the regular overhaul and inspection of US naval vessels.