Hanwha's holding firm to hive off non-core businesses

Hanwha Corp., the holding company of South Korea’s chemicals-to-defense conglomerate, will hive off its wind power and offshore plant building operations to Hanwha Ocean Co., while folding its solar panel manufacturing business into Hanwha Solutions Corp., as part of the group’s management efficiency efforts.

The transfer of the businesses, worth 440 billion won ($327 million), comes as Hanwha Group is gearing up for a leap in the defense industry, tapped by the group as a growth pillar, alongside the renewable energy and aerospace businesses.

Hanwha Corp. said in a regulatory filing on Wednesday that it is hiving off the wind power operation for 188.1 billion won and the plant construction business for 214.4 billion won to the shipbuilding affiliate.

The solar energy equipment business will be transferred to Hanwha Solutions for 37.0 billion won.

Hanwha Corp. has manufactured and supplied solar panels to Hanwha Solution, a petrochemical and solar cell firm. The solar panel business raked in sales of 241.9 billion won last year, a tiny portion of the company’s total sales of 53 trillion won in the same year.

Following the corporate restructuring, Hanwha Ocean, the world’s No. 2 shipbuilder, is expected to increase its presence in the renewable energy market.

The offshore wind and plant businesses it is taking over include the construction, transportation, installation and maintenance services of wind power generators; generator substructures; and offshore substations.

Particularly, Hanwha Ocean is zooming in on offshore plants to produce ammonia and hydrogen, as well as transportation vessels and storage facilities for these. 

RECHARGEABLE BATTERY BUSINESS

Hanwha Corp. will also split up its rechargeable battery manufacturing equipment division into a wholly owned new entity, Hanwha Momentum.

Its corporate restructuring aligns with its sister company Hanwha Aerospace Co.'s announcement on Tuesday to spin off non-core units to focus on the defense and aerospace businesses.

Industry watchers said the spin-off plan is part of Hanwha Group's bid to streamline its governance structure as it prepares for a management transfer to the three sons of group Chairman Kim Seung-youn.

Meanwhile, Hanwha Ocean has made a takeover bid for Austal, an Australian shipbuilder. Despite Austal’s rejection of the initial offer, Hanwha said it remains committed to the deal.

Write to Sang-Hoon Sung at uphoon@hankyung.com

Yeonhee Kim edited this article.