Hanwha shakes up its corporate structure by consolidating related businesses

A render of Hanwha Impact’s hydrogen and renewable energy business [HANWHA IMPACT]

Hanwha carried out a major overhaul of its corporate structure on Friday, bringing related businesses under one roof.

Hanwha Aerospace will merge its wholly owned subsidiary Hanwha Defense and a defense division of Hanwha Corporation, a holding unit of Hanwha. The engine-focused aerospace acquired a full stake in the holding unit division for 786 billion won ($605 million), according to an electronic disclosure.

Hanwha Aerospace supplies engines for fighter jets and combat ships while Hanwha Defense specializes in artillery systems, armed vehicles and air defense systems. The holding company’s division sells laser weapons and missile systems.

The consolidation will help the company enter new markets and expand its defense business, Hanwha Aerospace said, setting its sights on becoming a top 10 player in the industry.

Aerospace defense orders were centered on the United States and European countries, but the merged units exported their armament products to Australia, Turkey, India, the United Arab Emirates and India. Egypt.

Hanwha Aerospace CEO Shin Hyun-woo said the combined unit would be better placed to invest in advanced technologies.

“We will preemptively allocate research and development investment to secure advanced techniques such as autonomous driving, energy storage and automated battlefield situation monitoring,” Shin said in a statement. .

In order to better create synergy between the different defense sectors, Aerospace plans to build a new research center.

Conversely, the holding will buy Hanwha Precision Machinery, an equipment supplier previously owned by Aerospace, for 525 billion won.

Hanwha Corporation also merged its wholly owned subsidiary Hanwha Engineering and Construction (E&C).

The acquirer said the move was aimed at refocusing its business on energy, infrastructure and high-tech defense machinery.

“Hanwha Corporation currently manages renewable energy processing equipment and other machinery used to manufacture semiconductors and display panels,” the holdings unit said in a statement.

“By partnering with Hanwha Precision Machinery, it will focus on accelerating the growth of renewable energy processing and lay the foundation for becoming a specialist semiconductor equipment company in the medium to long term,” he said. -he declares.

With the merger of Hanwha E&C, the holding company will expand its renewable energy offerings to include wind power in addition to solar power cell and module manufacturing. E&C has built wind power plants in Yangyang County, Gangwon County and Jeju Island.

Hanwha Impact, a subsidiary specializing in chemicals and energy, will acquire Hanwha Power Systems from Aerospace for 210 billion won.

Since Power Systems has expertise in air compressors, the acquisition will help Impact gain an edge in growing its hydrogen business.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]