Hanwha Group has made significant strides in bolstering its defense business, marked by strategic acquisitions and active participation in international defense exhibitions. Recently, Hanwha Aerospace, the defense division of the Hanwha Group, has expanded its portfolio by acquiring additional shares of Hanwha Ocean, making it one of the major players in the global defense industry.
On February 10, 2023, Hanwha Aerospace announced the acquisition of 7.3% of Hanwha Ocean’s shares for approximately 1.3 trillion won. This acquisition increases Hanwha Aerospace's stake to 42.01% when combined with its subsidiary Hanwha Systems’ 11.57% holdings. This strategic move enables Hanwha Aerospace to consolidate Hanwha Ocean as a subsidiary, thereby gaining greater control over its operations.
Hanwha Aerospace's CEO, Son Jae-il, emphasized the importance of this acquisition, stating, "The purpose of acquiring additional shares of Hanwha Ocean is to strengthen our influence over the company, which is pivotal to our defense maritime operations and strategic joint investments." The acquisition aligns with Hanwha Aerospace’s ambitious goals of reaching sales of 40 trillion won and operating profit of 5 trillion won by 2030, largely driven by the synergy of its expanded defense capabilities.
This acquisition is part of Hanwha's broader strategy of establishing itself as a comprehensive defense company, encompassing land, sea, and air defense sectors. The company reported record performances, with sales reaching 11.25 trillion won and operating profit jumping to 1.72 trillion won, both showing significant growth compared to the previous year.
Simultaneously, Hanwha Group is preparing to showcase its capabilities at the upcoming IDEX 2025, which will take place from February 17 to 21, 2025, in Abu Dhabi, UAE. This exhibition, known for being the largest defense exhibition in the Middle East and Africa, will see Hanwha Group participating with the most extensive display to date.
During the exhibition, Hanwha Aerospace and Hanwha Systems will present their Long Range Surface-to-Air Missile system (L-SAM), which will make its international debut. L-SAM is noted for its advanced capabilities, featuring technology such as multiple pulse propulsion and attitude control devices, allowing it to perform effectively even at high altitudes.
The presence of Korean defense companies, including Hanwha, at IDEX 2025 aims to not only highlight their military technology but also to forge relationships within the strategically significant Middle Eastern market. The exhibition will host representatives from over 1,350 international companies across 65 countries, creating ample opportunities for collaboration and networking.
Hanwha’s participation also encompasses showcasing advanced systems such as the Korean Iron Dome, various unmanned systems, the K9 self-propelled howitzer, and anti-drone solutions, emphasizing their commitment to address regional security needs. A spokesperson for Hanwha noted, "Through this exhibition, we aim to present cutting-edge multi-layered air defense solutions and tailor-made products for the Middle Eastern market, enhancing regional security and contributing to economic development as well.”
The alliances and partnerships generated from IDEX will be pivotal as Hanwha Group sets its sight on solidifying its position within the global defense market, particularly within the Middle East, where defense spending continues to rise. This move is expected to open doors to various contracts and collaborations with countries like the UAE, Saudi Arabia, and Iraq, who have already recognized Hanwha’s capabilities through previous defense contracts.
Overall, Hanwha Group's strategic initiatives and its engagement at IDEX 2025 reflect its dedication to advancing its defense technology and establishing itself as a leader in the global defense industry. Through proactive measures and investments, Hanwha is not only enhancing its market presence but also redefining its corporate identity as a formidable player on the international stage.