S.Korean Hanwha to spend $1 bn on US acquisitions, business

South Korea’s chemicals-to-defense conglomerate Hanwha Group plans to invest $1 billion in acquisitions of companies in the US and businesses such as energy and aerospace in the world’s top economy to seek future growth there.

The group’s answer to Elon Musk’s SpaceX Hanwha Aerospace Co., and its chemical and renewable energy unit Hanwha Solutions Corp. decided to spend $500 million each on the rights offering of Hanwha Futureproof Corp., their 50-50 joint venture in the US, according to their filings to South Korea’s financial regulator on Wednesday.

Hanwha Futureproof is set to use most of the proceeds for takeovers of other companies and other businesses, industry sources said.

Hanwha Aerospace and Hanwha Solutions said they aim to participate in investments in blue-chip assets and companies in the US.

ENERGY, UAM, AEROSPACE

The two companies are expected to seek acquisitions or businesses in the US energy, urban air mobility (UAM) and aerospace sectors, which are likely to create synergy between them. They may join hands for the solar and defense industries.

“Hanwha Futureproof was established last March in the US for purposes of corporate acquisitions and local businesses there,” said a group official. “We have yet to make final decisions on what business the company will work on, however.”

The group has been expanding its businesses in the US with a plan to spend $2.5 billion on the largest solar energy production hub in the country by 2024. Hanwha Q Cells Co., a unit of Hanwha Solutions, topped the US residential and commercial solar module market last year.

US Vice President Kamala Harris praised a solar panel factory in the state of Georgia operated by Hanwha Solutions, citing the plant as one of the best examples of job creation and investment expansion promoted by the Biden Administration in the renewable energy sector.

Write to Mi-Sun Kang at misunny@hankyung.com
 
Jongwoo Cheon edited this article.