Philly Shipyard Tight-Lipped on Reports of Acquisition Talks with Hanwha Ocean

U.S. shipyard Philly Shipyard is reportedly in talks with South Korean shipbuilder Hanwha Ocean about a potential acquisition. 

Philly Shipyard issued a statement acknowledging the reports, but did not confirm or deny that any talks are taking place.

Located in Philadelphia, Pennsylvania, Philly Shipyard one of the few American shipyards capable of constructing ocean-going ships that comply with the Jones Act. The shipyard is the sole operating subsidiary of Philly Shipyard ASA, listed on the Oslo Stock Exchange, which is majority-owned by Aker Capital AS, which is in turn is wholly-owned by Norwegian holding company Aker ASA.

Philly Shipyard is currently involved both commercial and government projects. It recently delivered the first of five federal training and humanitarian ships to the U.S. Department of Transportation’s Maritime Administration. The five ships will be assigned to the state maritime academies and available to the federal government in times of national emergency. The first ship, Empire State, went to SUNY Maritime College. It is also constructing a Subsea Rock Installation Vessel for Great Lake Dredge & Dock that will support the construction of offshore wind projects in the U.S.

Hanwha Ocean, formerly known as Daewoo Shipbuilding and Marine Engineering (DSME), is one of South Korea’s “big three” shipbuilders and was acquired by South Korean conglomerate Hanwha Group earlier this year. Philly Shipyard has a history of using Korean designs in their shipbuilding.

Philly Shipyard addressed the speculation in a brief statement: 

“Philly Shipyard ASA has noted the recent press speculations regarding a potential transaction involving the Company and a Korean shipyard owner, Hanwha Ocean. As a matter of Company policy, we do not comment on rumours or speculation. The Company is continuously looking at strategic alternatives to maximize shareholder value and will inform the market in due course if and when appropriate in accordance with applicable law and regulations.”

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