An aerial view of Austal's shipyard in Mobile, Alabama. [Austal website]
An aerial view of Austal's shipyard in Mobile, Alabama. [Austal website]

Hanwha is pursuing the acquisition of Austal USA, the American subsidiary of Australian shipbuilding and defense company Austal. The move is seen as part of a strategy to position the conglomerate as a core partner in MASGA — the Maritime and Shipbuilding Growth for America initiative — by gaining control of an operational US shipyard.

According to industry sources Tuesday, Hanwha Defense USA, the US arm of Hanwha Aerospace, recently offered Austal between $1.05 billion and $1.2 billion for 100 percent of Austal USA's business entity and operating assets. The offer values Austal USA on a cash-free, debt-free basis.

Hanwha became Austal's largest shareholder last year after acquiring a 19.9 percent stake for about 330 billion won ($232 million). The latest bid is aimed at expanding the group's ship production base inside the United States.

Founded in 1999 and headquartered in Mobile, Alabama, Austal USA is one of the primary contractors for major US naval vessel programs. The company has delivered 34 warships to the US Navy to date, spanning a range of vessel types including littoral combat ships, expeditionary fast transports, offshore patrol cutters and expeditionary medical ships. In 2022, it also undertook the construction of nuclear-powered submarine modules.

Austal USA currently holds an order backlog of $10 billion. Since 2024, the company has been carrying out large-scale capital investment at its shipyard to expand vessel construction capacity.

Should the acquisition go through, Hanwha would secure its second US shipyard, following its purchase of Philly Shipyard in 2024. Philly Shipyard recently won a contract from the US Missile Defense Agency to build a maritime missile test instrumentation ship, cementing its status as a key MASGA hub.

Hanwha's aggressive acquisition push is aimed at strengthening its position in the US naval vessel market. The United States is competing with China for dominance over global maritime power, but its shipbuilding capabilities are widely regarded as significantly inferior to China's. Washington has been pursuing MASGA in partnership with South Korea to maintain its naval competitiveness.

However, regulations and other constraints make it difficult to build US military vessels outside the country. With that in mind, Hanwha has been working to secure a domestic US shipyard to emerge as a core MASGA partner — a goal that underpins its pursuit of Austal USA.


yeongdai@heraldcorp.com