Hanwha Aerospace to spin off non-core units for defense sector
Hyung-Kyu Kim
4 HOURS AGO
Prototype of Hanwha Aerospace’s advanced aero engine (File photo by Hanwha Aerospace) Hanwha Aerospace Co., South Korea’s answer to Elon Musk’s SpaceX, decided to separate non-core units to concentrate on defense and aerospace businesses – key growth drives of the chemical-to-defense conglomerate Hanwha Group.
Hanwha Aerospace said on Wednesday its shareholders approved its plan to spin off its semiconductor equipment-making unit Hanwha Precision Machinery Co. and security system affiliate Hanwha Vision Co.
Hanwha Aerospace also plans to establish a new holding company dubbed Hanwha Industrial Solutions, which will take 100% stakes in the separated units.
Hanwha Corp., the group’s holding company, is set to hold a 33.95% stake in the new company.
Hanwha Aerospace, the aircraft engine-making unit of Hanwha Group, unveiled the spin-off plan in April.
DEFENSE TROIKA
The spin-off allowed the group to accelerate its defense business led by three units – Hanwha Aerospace, Hanwha Ocean Co. and Hanwha Systems Co.
“We aim to become a global top-tier defense maker and lead the aerospace and new mobility industries,” said Hanwha Aerospace CEO Son Jae-il.
Hanwha Aerospace merged Hanwha Defense Co. in November 2022 and Hanwha Corp.’s defense division in April 2023 to promote synergy and cut costs in the business.