Seoul: Republic of Korean conglomerate Hanwha announced plans to invest 337 billion won (US$232.9 million) in its Australian subsidiary, HAA No. 1 PTY LTD, as part of its strategy to expand its presence in the global market. This investment is seen as a preparatory step towards a potential acquisition of the Australian shipbuilder, Austal.

According to Lao News Agency, Hanwha Systems and Hanwha Aerospace have made separate regulatory filings detailing their contributions to the investment. Hanwha Systems will invest 202.7 billion won, while Hanwha Aerospace will contribute 64.2 billion won, both through a paid-in capital increase in their Australian subsidiary.

The companies have stated that the capital increase is intended to facilitate their expansion into global markets, specifically targeting opportunities in Australia. This move comes in the wake of reports indicating Hanwha’s interest in acquiring shares of Austal, following the failure of a previous bid last year.

The potential acquisition is part of Hanwha’s broader strategy to secure contracts for warships and related services, such as maintenance, repair, and overhaul, particularly in lucrative markets like the United States.