Hanwha wins Australian government approval to increase its stake in Austal
The first three Mogami-class ships will be built by MHI in Japan. (Image: MHI/Australian Department of Defence)
The contract would mean the two shipbuilders can collaborate strategically and enhance shipbuilding capabilities in Western Australia.
The Australian government has approved Korean company Hanwha’s long-standing application to increase its stake in Western Australian shipbuilder Austal to 19.9%.
“Today I have agreed to the clear recommendation from the Foreign Investment Review Board to not object to Hanwha’s proposal to increase its shareholding in Austal Limited from 9.9% to 19.9%, subject to strict conditions,” said Australian Treasurer Jim Chalmers.
This decision is likely to raise eyebrows at Japanese company Mitsubishi Heavy Industries (MHI). Austal has been nominated by the Australian Department of Defence (DoD) as the builder of up to eight Japanese upgraded Mogami-class frigates under Project SEA 3000
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