Targets Revenue of 30 Trillion Won by 2024
Hanwha Ocean decided on a capital increase of approximately 2 trillion won during its board meeting on Aug. 23. Concurrently, the company also set forth a goal to achieve 30 trillion won in sales and 5 trillion won in operating profit by 2040.
Out of the funds secured from this capital raise, about 900 billion won will be allocated towards securing overseas production bases combined with unmanned and advanced technology. The goal is to establish infrastructure for entering the global naval defense market, focusing on the U.S. and Europe.
Given the geopolitical crises and subsequent increase in defense budgets, the global ship market is projected to reach approximately US$986 billion over the next decade. Out of this, Hanwha Ocean aims to quickly emerge in the submarine and surface vessel market, estimated to be US$243 billion.
Hanwha Ocean is also actively responding to the rising demand for eco-friendly products and technologies due to stricter global environmental regulations. About 600 billion won from the capital raised will be invested to develop eco-friendly propulsion systems based on ammonia, methanol, and hydrogen. They will also develop ships for transporting ammonia, carbon dioxide, and hydrogen. Additionally, by 2030, the company plans to acquire technology for ships with Level 4 full autonomous navigation.
Hanwha Ocean is also investing approximately 200 billion won in the global offshore wind market, which is growing at 18% annually, focusing on Europe, the U.S., and Asia. They aim to secure overwhelming competitiveness for sustainable growth in the existing shipbuilding sector, allocating about 300 billion won to develop an automated “smart yard” to enhance safety and address the decline of skilled labor due to demographic changes.
Kwon Hyuk-woong, CEO of Hanwha Ocean, said, “With this significant investment, we aim to go beyond maximizing the intrinsic competitiveness of shipbuilding and become a global innovative company offering solutions to the security and climate crises the world is facing.”