Hanwha Offers Over $1 Billion for Austal USA Assets as Philly Expansion Stalls
Updated
Updated · The Philadelphia Inquirer · Aug 11
Hanwha Offers Over $1 Billion for Austal USA Assets as Philly Expansion Stalls
3 articles · Updated · The Philadelphia Inquirer · Aug 11
Summary
Hanwha has offered more than $1 billion for Austal USA’s Mobile shipyard, nearby submarine-module sites and a San Diego repair yard, with four weeks for due diligence and U.S. government meetings before closing.
The bid marks a shift away from immediate Philadelphia-area expansion after Hanwha failed to secure Paulsboro port facilities and has yet to build the major additions promised at its Philly yard.
Austal USA brings about 3,500 workers and profitable submarine-module work for General Dynamics, capabilities Hanwha wants as it pushes deeper into U.S. naval and submarine supply chains.
The target also comes under pressure: Austal’s parent disclosed a $175 million annual loss at its U.S. shipbuilding arm after the Navy refused higher payments on several vessel programs.
For Hanwha, the deal would broaden a U.S. shipbuilding strategy launched with its $100 million Philly purchase in 2024, as it seeks more profitable government work over commercial shipbuilding.