Hanwha Group has completed its takeover of one of South Korea’s largest shipbuilders, Daewoo Shipbuilding & Marine Engineering (DSME), and is set to rebrand the company as Hanwha Ocean. The proposed name change has already been submitted for trademarking and will be put to a shareholder vote on 23 May, when DSME will become a subsidiary of Hanwha Group.
The takeover of DSME by Hanwha Group is a significant event in the global shipbuilding industry. DSME is one of the big three of Korean shipbuilding, alongside Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI). The proposed takeover of DSME by HHI was blocked by the European Commission (EC) in January 2022, as it would have given it a dominant position in the market for the construction of LNG carriers.
Hanwha Group's acquisition of DSME will end a 45-year association with the Daewoo name, which was established in 1978 when Daewoo took over Korea Shipbuilding & Engineering Corp. The company has been a key player in the shipbuilding industry, known for its expertise in constructing high-value vessels, including LNG carriers, drillships, and ultra-large container ships.
As part of the takeover, nine new directors have been proposed, with Kwon Hyek-woong, vice president of Hanwha's Support Division, nominated as the new head of DSME. Kwon led the acquisition team for the shipyard since September last year.
The rebranding of DSME as Hanwha Ocean is expected to provide the company with a fresh start and new opportunities to grow and expand its business. Hanwha Group is a diversified conglomerate with interests in various sectors, including chemicals, energy, defense, finance, and construction.
In recent months, there have been several high-profile mergers and acquisitions in the shipbuilding industry, including the merger of Singapore’s Sembcorp Marine and Keppel Offshore & Marine, which became Seatrium in late April. These developments reflect the changing dynamics of the global shipbuilding industry, with companies seeking to consolidate their positions and leverage their strengths to meet the evolving needs of the market.
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