The well-known US shipbuilding company Philly Shipyard is transitioning to Korean ownership. The Hanwha Group has won the bid for $100 million.
As part of the change, the previous owner, Aker, is selling the entire business. “Hanwha is recognized as a global leader and brings a wealth of experience in shipbuilding that will enable the shipyard to realize a greater vision for its employees and customers,” says Kristian Røkke, Chairman of the Board of Philly Shipyard ASA.
The transaction is still subject to CFIUS (Committee of Foreign Investments in the US) and other regulatory approvals. Therefore, the parties expect the transaction to close in the fourth quarter of 2024.
Philly Shipyard builds Jones Act compliant
The former Aker Philadelphia Shipyard operates civilian shipbuilding on the US East Coast after the US Navy largely discontinued its contracts. It is located on the same site as the Philadelphia Naval Shipyard.
The shipyard was previously a listed company on the Oslo Stock Exchange and is part of Kjell Inge Røkke’s Aker Group. The shipyard builds Jones Act-compliant ships for domestic traffic, primarily product tankers and container ships.
The South Korean Hanwha Group, including Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering – DSME), had been traded as a potential buyer for some time. Philly Shipyard currently has an order backlog of around USD 1.6 billion with a utilization horizon until 2027. The order book includes four multi-purpose vessels, a Jones Act-compliant installation vessel and three container ships for the Hawaii shipping company Matson.
