Starting Self-dependence
The Hanwha Group’s manufacturing business units began to find their own ways for their future along with Hanwha Techwin’s physical division in three years after the group’s takeover of the company as a watershed. It is forecast that the physical division will not only enhance the competitiveness of each affiliate but begin to overhaul the Hanwha Group’s manufacturing affiliates at the group level.
According to the industry on July 2, three companies –- Hanwha Ground Defense, Hanwha Power Systems and Hanwha Precision Machinery –- began their independent operation activities by holding internally their foundation ceremonies on July 3. Earlier in April, Hanwha Techwin announced that the company will be physically divided into the three companies in the military hardware, energy equipment and industrial machinery sectors, respectively. The three companies will be incorporated as wholly owned subsidiaries of Hanwha Techwin via the physical division method.
Hanwha Techwin said that the remaining business divisions will be the airline engine and security business divisions. Hanhwa announced that they will pursue a spin-off of the security business in the future. Once the security business is spun off, the security business will be with Hanwha Techwin under Hanwha Corp.
As the Hanwha Group’s defense industry and production affiliates renewed their formations, attention is being paid to their future business activities and additional changes in their corporate governance. Hanwha Techwin is expected to aggressively pursue aggressive orders from and make investments in global aviation engine makers. In addition, it is expected that its cooperation with global aviation companies will be strengthened. Shin Hyun-woo, CEO of
Hanwha Techwin, recently met with reporters and said "We are always ready for making M&A deals. I think we can work with global companies like our partnership with General Electric."
Apart from Techwin’s aviation business division, the security business division sounded out the takeover of a North American security solution company while the energy equipment division was in the race to acquire the compressor business unit from the Siemens.
A possibility of additional reorganization is also being discussed. Inside the Hanwha Group, it is said that the Hanwha Group is brooding over how to manage the defense business scattered among affiliates and generate synergies. In fact, some business areas, such as laser devices and navigation systems, are being transferred among affiliates.