Austal USA's shipyard in Mobile, AlabamaAUSTAL USA
Hanwha Group has officially proposed to acquire Austal USA — U.S. operations of Australian shipbuilding and defense company Austal — in a move to secure a shipyard capable of building warships in the United States.
Hanwha Defense USA submitted a proposal to acquire Austal USA for between $1.05 billion and $1.2 billion, according to Austal on Tuesday.
Hanwha Defense USA, a subsidiary of Hanwha Aerospace, oversees the development of the company’s U.S. defense business across the land, sea and air domains.
Korean President Lee Jae Myung, left, arrives at the Hanwha Philly Shipyard for a ceremony on Aug. 26, 2025, in Philadelphia.AP/YONHAP
Hanwha, which already operates Hanwha Philly Shipyard in Philadelphia, is seeking another U.S. shipyard acquisition because it believes the move could amplify the benefits of the Korea-U.S. shipbuilding cooperation initiative known as “Make American Shipbuilding Great Again,” abbreviated as “MASGA.”
While Philly Shipyard serves as Hanwha’s foothold for its U.S. shipbuilding business, it has primarily focused on commercial vessels. It has yet to secure the qualifications needed to build U.S. warships.
By contrast, Austal USA, a wholly owned subsidiary of Austal, builds vessels for the U.S. Navy and Coast Guard as well as modules for Virginia-class and Columbia-class nuclear-powered submarines at its shipyard in Mobile, Alabama. The company conducts maintenance, repair and overhaul work on vessels using a 9,000-ton floating dry dock at its San Diego shipyard in California. It also operates an Advanced Technologies facility in Charlottesville, Virginia.
Acquiring Austal USA would give Hanwha an established U.S. warship-building capability and production base in one stroke.
“Our top priority is to make a significant contribution to rebuilding the U.S. shipbuilding industry, and we are exploring a range of options to expand our business footprint in the United States,” a Hanwha source said.
“Any transaction would be subject to due diligence that allows us to thoroughly assess Austal USA’s business and financial position, including newly disclosed information.”
Hanwha's offer is nonbinding, which means that it does not legally obligate either side to enter into a transaction. The bid was submitted as a range — $1.05 billion to $1.2 billion — reflecting that Hanwha has not yet completed full due diligence on Austal USA's financials and contracts; the final figure is expected to be set only after that review is complete. Any deal would be subject to due diligence, regulatory approvals and other procedures before advancing to final negotiations.
People sport Make America Shipbuilding Great Again, or MASGA, hats as they wait for Korean President Lee Jae Myung to arrive at the Hanwha Philly Shipyard in Philadelphia for a ceremony on Aug. 26, 2025.AP/YONHAP
Austal has also concluded that the proposal warrants consideration and has entered into talks while leaving open the possibility of a sale. It granted Hanwha four weeks to conduct due diligence on Austal USA.
Still, Hanwha faces a series of hurdles before it can complete an acquisition, including approvals from the Committee on Foreign Investment in the United States and the Defense Counterintelligence and Security Agency and an antitrust review under the Hart-Scott-Rodino Act and the signing of a definitive agreement.
Separately, Hanwha has also been pursuing control of Austal. The Korean company became the Australia-based company’s largest shareholder last year after acquiring a 19.9 percent stake.
BY KO SUK-HYUN [lee.soojung1@joongang.co.kr]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
