Hanwha Group is set to expand into naval shipbuilding
DSME has been struggling financially for years, and Hanwha Group is set to take a major stake in the shipbulder. (Photo: DSME)
Hanwha is broadening its portfolio, with a bid to take a controlling stake in shipbuilder DSME likely to proceed.
Hanwha Group of South Korea announced on 26 September that it had signed a conditional MoU to take a managerial controlling stake in Daewoo Shipbuilding & Marine Engineering (DSME).
This was a preliminary agreement to secure a 49.3% stake – worth some KRW2 trillion ($1.4 billion) – in the debt-ridden South Korean shipbuilder.
However, the agreement requires that no other competitive bidder better Hanwha’s offer before a deadline of 17 October.
In 2021, the ailing DSME suffered operating losses amounting to KRW1.7 trillion, and nearly KRW600 billion in the first half of this year. A 51-day strike by DSME subcontracted
Already have an account? Log in
Want to keep reading this article?
Read this Article
Get access to this article with a Free Basic Account
- Original curated content, daily across air, land and naval domains
- 1 free story per week
- Personalised news alerts
- Daily and weekly newsletters
- Free magazine subscription to all our titles
- Downloadable equipment data handbooks
- Distribution rights (Corporate only)
Unlimited Access
Access to all our premium news as a Premium News 365 Member. Corporate subscriptions available.
- Original curated content, daily across air, land and naval domains
- 14-day free trial (cancel at any time)
- Unlimited access to all published premium news
- 10-year news archive access
- Downloadable equipment data handbooks
- Distribution rights (Corporate only)
More from Defence Notes
-
![How the Pentagon will use private capital to fund critical capabilities]()
How the Pentagon will use private capital to fund critical capabilities
The DoD has changed its structures and is been increasing efforts to facilitate access to loans by companies interested in working with artificial intelligence, advanced materials and semiconductors, biotechnology and quantum science.
-
![HAL is major beneficiary of latest Indian procurement approvals]()
HAL is major beneficiary of latest Indian procurement approvals
India has approved millions of dollars in new military purchases, most of which will go to public sector companies.
-
![Why cybersecurity must be a priority for Latin American militaries]()
Why cybersecurity must be a priority for Latin American militaries
The main obstacles to overcoming risks in the region are a lack of a strong cybersecurity culture and inadequate funds to invest in this domain given a widespread Chinese presence in the region.
-
![MBDA navigates supply chain pressures amidst increased demand for armaments]()
MBDA navigates supply chain pressures amidst increased demand for armaments
MBDA is adapting to supply chain pressures as the Russian invasion of Ukraine leads to increased demand for armaments.
-
![Why UK defence still faces an uncertain future and difficult decisions]()
Why UK defence still faces an uncertain future and difficult decisions
Despite the additional funding promised this week, the UK armed forces still look set to face cutbacks, and maintaining international commitments to AUKUS and GCAP may limit the options for other programmes.
-
![What's the deal with defence procurement? (podcast)]()
What's the deal with defence procurement? (podcast)
This week on the Shephard Defence Podcast, senior naval reporter Harry Lye and military training & simulation reporter Norbert Neumann chat with Professor John Louth.
