Hanwha Aerospace : Ocean to Raise KRW 2 trillion to Fuel Strategic Growth in Maritime Defense Solutions

SEOUL, SOUTH KOREA, Aug. 23, 2023 - Hanwha Ocean, a leading shipbuilding and offshore marine service provider, announced today its transition towards becoming a 'Global Ocean Solution Provider', spearheading the paradigm shift in the future maritime industry.

The Board of Directors today approved the company's intention to offer KRW 2 trillion of common stocks, aiming for revenue of KRW 30 trillion by 2040. The paid-in capital increase will be implemented through a general public offering of forfeited stocks following the shareholder allocation process.

Hanwha Ocean plans to use the net proceeds from the offering to boost its overseas maritime defense expansion, make significant investments in eco-friendly propulsion systems and solution, smart ship with high technology of 'level 4' fully automated navigation. The company also aims to become a 'total solution provider' for the offshore wind business by offering a full range of value chain services, including WTIV, and while transforming itself into a smart shipyard, a change characterized by superior productivity driven largely by automation.

The new funding will enable Hanwha Ocean to proactively respond to escalating global security needs through strategic expansion into the global maritime defense market. This initiative is driven by the company's commitment to harness unmanned and advanced technology, and to establish secure overseas production bases. These measures come at a time of increasing geopolitical tensions, which have triggered a surge in defense budgets worldwide. Over the next decade, the global warship and naval vessel market is projected to grow to $986 billion, and as part of this growth, Hanwha Ocean plans to tap into the global submarine and surface ship market, which is estimated to be worth up to $243 billion.

"This is a significant step towards securing future growth engines in response to climate change and the global security crisis," said Kwon Hyek-woong, CEO of Hanwha Ocean. "Through this substantial investment, we aim to not only maximize the inherent competitiveness of shipbuilding but also become a global innovative company that provides solutions to the world's security and climate change in the maritime industry."

• KRW 900 billion will be invested to secure overseas production bases and advanced technologies, targeting the global maritime defense market in the United States and Europe. By integrating Hanwha Aerospace's ESS for submarines and Hanwha Systems' unmanned combat systems, the company aims to gain a competitive edge and enter the overseas MRO business.

• KRW 600 billion will be directed towards the development of an 'eco-friendly propulsion system' using ammonia, methanol, and hydrogen, and to create carriers for these substances, responding to the global demand for eco-friendly products and technologies. The company has set a goal to achieve 'level 4' autonomous operation in smart ship technology by 2030.

• KRW 200 billion will be invested to the global offshore wind power market, which is growing at an annual rate of 18%. Leveraging the Hanwha group's energy development capabilities, the company aims to offer comprehensive services for offshore wind power, including the development and manufacturing of offshore wind power projects, along with the transportation, installation, and maintenance of vessels, substructures, and substations.

• KRW 300 billion will be invested to construct a 'smart yard', amplifying productivity through robotics and automation, to enhance safety measures and address the dwindling number of skilled production jobs due to an ageing workforce.

About Hanwha Ocean

Hanwha Ocean has since grown into the world's premium shipbuilding and offshore contractor who is specialized in building various vessels, offshore platforms, drilling rigs, FPSO/FPUs, submarines, and destroyers. Hanwha Ocean manufactures high-quality products based on its vast IT expertise, well-managed shipbuilding technologies, superb fixed-platform construction capacities, large-scale project management know-how, and submarine/destroyer construction technologies.