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South Korean defence prime Hanwha Group has welcomed US regulatory clearance to increase its current 9.9 per cent equity position in defence shipbuilder Austal Limited to a strategic 19.9 per cent equity position.
The Committee on Foreign Investment in the United States (CFIUS), equivalent to Australia’s Foreign Investment Review Board, has granted Hanwha clearance to increase its shareholding in Austal up to 100 per cent.
The clearance signifies US government’s complete support for Hanwha’s proposed investment in Austal and the finding of “no unresolved national security concerns”.
Hanwha has also an application before Australia’s Foreign Investment Review Board to increase its current 9.9 per cent equity position in Austal to 19.9 per cent.
In welcoming the confirmation, Hanwha Global Defence chief executive officer Michael Coulter said the CFIUS outcome marks an important milestone that reflects the positive reception Hanwha has received from various levels of the US government.
“The CFIUS outcome is evidence of the strong support we have within the US government, based on our track record of collaboration with US and allied partners, our expertise and technology, and our performance in delivering on time and at scale,” he said.
“It is also consistent with the significant interest we are receiving from the US government for further transfer of our technology and practices from Korea to help uplift shipbuilding in the United States.
“Hanwha remains committed to making a meaningful contribution to Austal as a trusted partner with complementary manufacturing and operational experience, which will help both Austal and its clients access the world’s best defence technology and practice.”
The company has indicated plans to provide Austal access to capital, international relationships and operational and technical expertise that can accelerate the development of Austal’s business.
The changes are also expected to enhance Australia’s defence capability at a time where the development of sovereign defence capability is increasingly important, according to Hanwha Group.
