Hanwha Bids For Austal’s Domestic Business

Hanwha Defense USA has made a preliminary, non-binding offer to acquire Austal Ltd.’s U.S. business for between $1.05 billion and $1.2 billion, a move that could give the South Korean defense group control of Austal USA’s shipbuilding operations in Mobile, Ala.

Austal has granted Hanwha a four-week due diligence period to review the U.S. business. The proposal is limited to Austal USA and does not include Austal’s operations in Australia, the Philippines or Vietnam.

“Hanwha Defense USA has made a preliminary, non-binding offer to acquire Austal’s U.S. business,” company spokesman James Hewitt said August 10. He said any transaction would depend on a review of Austal USA’s operations and finances.

Austal USA builds ships for the U.S. Navy and Coast Guard and is expanding its Mobile facilities for steel ship construction and submarine module production. Its current work includes Heritage-class Offshore Patrol Cutters for the Coast Guard and submarine industrial-base projects supporting U.S. Navy programs. Austal USA employs about 3,500 people at its Mobile-area operations and San Diego repair facilities.

The offer represents Hanwha’s latest effort to expand its U.S. shipbuilding presence. Hanwha acquired Philly Shipyard in 2024 and previously sought to acquire all of Austal, but that proposal was dropped after concerns over regulatory approvals. Hanwha later received clearance from the Committee on Foreign Investment in the United States to increase its ownership position in Austal.

Any sale of Austal USA remains subject to due diligence, negotiation of definitive agreements and applicable regulatory approvals.