South Korea’s Hanwha Cleared to Boost Control of U.S. Navy Shipbuilder Austal

Hanwha Group has received clearance from the Committee on Foreign Investment in the United States (CFIUS) to increase its shareholding in Australian shipbuilder Austal Limited up to 100%, marking a significant milestone in the South Korean shipbuilder’s expansion into the U.S. shipbuilding sector.

The company currently holds a 9.9% stake in Austal, acquired in March 2025, and plans to increase this to 19.9%. Austal’s U.S.-based subsidiary Austal USA is a major U.S. military shipbuilder and defense contractor.

The CFIUS ruling found “no unresolved national security concerns” with Hanwha’s increased stake.

“The CFIUS outcome is evidence of the strong support we have within the U.S. government,” said Hanwha Global Defense CEO Michael Coulterd. “It is also consistent with the significant interest we are receiving from the U.S. government for further transfer of our technology and practices from Korea to help uplift shipbuilding in the United States.”

The development comes as the Trump administration and Congress have signaled intentions to boost the U.S. shipbuilding industry, which has faced significant challenges with delays and cost overruns affecting naval fleet maintenance and construction. Hanwha has already shown its commitment to the U.S. market through its recent acquisition of the Philadelphia Shipyard and completing maintenance work in South Korea on the Military Sealift Command’s dry cargo ship USNS Wally Schirra—the first time a Korean shipyard has secured a U.S. Navy vessel maintenance contract.

Hanwha’s strategic investment in Austal, which derives approximately 80% of its revenue from U.S. operations, is expected to provide the Australian shipbuilder with access to capital, international relationships, and operational expertise. Austal’s American presence includes facilities in Mobile, Alabama, San Diego, and Charlottesville, Virginia.

The transaction still requires approval from Australia’s Foreign Investment Review Board for the planned increase to 19.9% ownership.

This latest development follows an unsuccessful attempt by Hanwha to acquire Austal entirely last year.

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