Hanwha Aerospace to raise W3.6tr for global expansion
Korean defense giant seeks more overseas footholds in defense, shipbuilding
Hanwha Aerospace said Thursday that its board of directors decided to raise 3.6 trillion won ($2.46 billion) through a rights offering as it aims to secure more overseas footholds in land and maritime defense and shipbuilding sectors.
According to Hanwha Aerospace, 1.6 trillion won from the paid-in capital increase will be used to establish overseas plants and invest in stakes for defense cooperation.
As European and Middle Eastern countries prefer investment for local production from simply purchasing weapons systems, Hanwha Aerospace said it will look to actively respond to such needs by building sites globally.
The company plans to invest 900 billion won in important defense facilities in Korea as well to bolster the country's role as its global research and development hub and mother factory.
Centered on the US, Hanwha Aerospace said it will invest 800 billion won to acquire global maritime defense and shipbuilding footholds. The company already has been conducting a multi-yard strategy based on its Okpo Shipyard in Geoje, the US Philly Shipyard and the Singaporean Dyna-Mac Shipyard.
Hanwha Aerospace added that it will invest 300 billion won in developing engines for uncrewed aircraft while expanding cooperation with global partners and strengthening the sovereignty of aerospace engine technologies.
The Korean defense-to-shipbuilding company underscored that as a big cycle is expected for defense demands in the mid-to-long-term, it will set up production sites in Europe, the Middle East, Australia and the United States to achieve annual revenue of 70 trillion won and operating profit of 10 trillion won in 2035.
According to Hanwha Aerospace, the allocation of new shares will take place on April 24. The subscription period for the existing shareholders will be held for two days from June 3 while the public offering of unsubscribed shares will occur from June 9 to 10.
'As our relentless efforts for growth have led to sustainable profits and an increase in the corporate value, we will achieve another quantum leap in the corporate value by making strategic large-scale investments and advancing to the next level as a top-tier player in the global defense, shipbuilding, maritime and aerospace industries, 'said Son Jae-il, CEO of Hanwha Aerospace.
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