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Photo = Hanwha Aerospace |
[Alpha Biz= Kim Jisun] Hanwha Aerospace is set to raise funds through a 3.6 trillion KRW rights offering, marking the largest capital increase ever conducted by a South Korean company.
On Thursday, the company's board of directors approved the rights issue, which will be carried out through a shareholder allocation followed by a public offering of any unsubscribed shares. The record date for new shares is set for April 24, with existing shareholders able to subscribe on June 3-4. Any remaining shares will be available for public subscription on June 9-10.
The raised funds will be used to establish strategic overseas production bases in regions where defense demand is expected to surge, including Europe, the Middle East, Australia, and the United States. Hanwha Aerospace aims to become a "top-tier" company in the global defense, shipbuilding, and aerospace industries, setting a long-term goal of achieving 70 trillion KRW in revenue and 10 trillion KRW in operating profit by 2035.
In Europe, countries are increasing their defense budgets and strengthening self-reliance in military capabilities. Meanwhile, under the new Donald Trump administration, the U.S. is reinforcing its maritime defense and shipbuilding industry to counter China in the geopolitical arena.
To meet this growing demand, Hanwha Aerospace plans to invest 1.6 trillion KRW in overseas factories for ground weapon production. These facilities are expected to manufacture K9 self-propelled howitzers, Chunmoo multiple rocket launchers, Redback armored vehicles, and air defense systems. The decision to establish local production sites aligns with the preference of European and Middle Eastern nations for joint investments over simple arms procurement.
Additionally, 800 billion KRW will be allocated to securing overseas marine defense and shipbuilding production bases. Hanwha Aerospace is executing a "multi-yard" strategy by integrating the U.S.-based Philly Shipyard and Singapore's Dynamic Shipyard, which it acquired last year.
Just two days ago, the company also acquired a 9.9% stake in Austal, which operates shipyards in the U.S. and Australia. With the U.S. pushing legislation such as the "Shipbuilding Industrial Base Enhancement Act" and the "Naval Readiness Act," Hanwha Aerospace is poised to expand shipyard investments in America.
Furthermore, the company plans to invest 300 billion KRW in facilities for unmanned aerial vehicle (UAV) engine development, enhancing mass production capabilities. Hanwha Aerospace seeks to develop proprietary UAV engines and expand collaborations with global drone manufacturers.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
