South Korean company Hanwha has completed the acquisition of Daewoo Shipbuilding & Marine Engineering (DSME), which has been re-established as Hanwha Ocean. After an extraordinary shareholders’ meeting, Hanwha Ocean was rebranded and a new board appointed. It has become a major shareholder of Hanwha Ocean, with five subsidiaries, including Hanwha Aerospace and Hanwha Systems, collectively holding a 49.3% stake worth $1.5bn.
DSME had faced significant financial difficulties for several years as global demand for new vessels, particularly in the offshore oil and gas industry, declined. High labour costs, cost overruns and delivery delays added to the problem until its survival was dependent on government support, including State-owned Korea Development Bank. However, Hanwha Ocean plans to transform the firm, focusing on producing advanced technologies and sustainable solutions for the marine industry.
Tags: DSME,hanwha ocean,south korea