Hanwha Group is expanding its business operations in the United States, focusing on defense and shipbuilding. Following the establishment of an ammunition production base by Hanwha Aerospace, Hanwha Ocean is planning significant investments in the U.S. shipbuilding sector to support its revival. This strategy goes beyond simple exports, aiming to secure local production and employment.
On September 22, Hanwha Defense USA, a subsidiary of Hanwha Aerospace, announced the opening of a local office at the Pine Bluff Arsenal, a U.S. Army base in Arkansas. This office marks the first step in executing plans to establish an ammunition production base.
Hanwha Aerospace plans to build facilities for producing components and propellant for 155mm artillery shells at this site. The new facility will implement an integrated manufacturing system that vertically integrates the entire ammunition production process, from raw materials to finished products. This new production capability is expected to enhance U.S. ammunition production capacity and modernize the aging ammunition industry.
To achieve this, Hanwha Aerospace intends to invest $2.2 billion over the next seven years to establish the ammunition production base, creating approximately 400 jobs.
With this investment, Hanwha Aerospace aims to accelerate its expansion in the U.S. market. Last month, the company signed a contract to supply prototypes of the K9 self-propelled howitzer (K9MH) for the U.S. Army's Mobile Tactical Howitzer (MTC) program and is setting up facilities in Opelika, Alabama, for prototype assembly, integration, and testing. The strategy is to strengthen its position in the U.S. ground defense market while contributing to the solidification of the South Korea-U.S. alliance.
Hanwha Ocean is also significantly increasing its local investments to support the revival of the U.S. shipbuilding industry. A key initiative is the MASGA (Korea-U.S. Shipbuilding Industry Cooperation Project), a $150 billion investment project established during U.S.-Korea tariff negotiations. The project aims to support the rebuilding of the U.S. shipbuilding industry through ship construction, shipyard investments, technology transfer, and workforce training.
Hanwha has identified the U.S. shipyard in Philly as a core component of MASGA and is intensifying its investments. After acquiring the Philly shipyard for approximately $100 million in 2024, the company plans to invest an additional $5 billion to significantly enhance shipbuilding capabilities in the U.S.
The plan includes adding two new docks and three berths, as well as considering the establishment of block production facilities, with a goal of increasing annual production capacity from 1-2 vessels to up to 20. Over the next five years, the local workforce is expected to expand to around 10,000 employees.
Hanwha Ocean will also apply its automation and smart yard technologies locally. The company plans to expand its production capabilities to include not only commercial vessels like LNG carriers but also modules and blocks for naval ships, with a long-term goal of constructing U.S. Navy vessels. This initiative is expected to accelerate Hanwha Ocean's efforts to penetrate the U.S. naval market by linking its existing maintenance, repair, and overhaul (MRO) operations for U.S. Navy vessels with local production capabilities.
* This article has been translated by AI.
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