Hanwha doubles down on US defense market with sweeping restructuring push

Hanwha Group is expanding its footprint in the United States, the world's largest defense market. Having secured an entry point into the US Army, the conglomerate is now building local production bases while pushing to grow its shipbuilding and maritime defense business. As its American operations scale up, it is accelerating a restructuring effort to consolidate all US defense activities under Hanwha Defense USA.

Hanwha Defense USA, established in 2021, has been picking up pace on US expansion, according to industry sources. Last month it signed a contract with the US Army to supply prototype K9 wheeled self-propelled howitzers — designated the K9MH — under the Mobile Tactical Cannon program, and separately announced plans to build a large-scale ammunition production facility in Arkansas. In Opelika, Alabama, the company is setting up a facility for the assembly, integration and testing of K9MH prototypes.

In line with that growth, Hanwha is reorganizing its US business management structure around Hanwha Defense USA. The plan is to consolidate government relations, certification and contract management under a single local entity that already has offices and staff on the ground, boosting operational efficiency. "As our US business expands, we will need to hire more people beyond essential staff — including those handling sales and operations," a company official said.

Hanwha has also been consistently recruiting specialized talent in the United States. In 2024, it brought on Michael Coulter as CEO, a professional with more than 30 years of experience in US defense. For its shipbuilding division, the company has placed local American figures at the front, appointing Tom Anderson — a retired US Navy rear admiral — as president. Mike Smith, a US Navy veteran, serves as chief operating officer for the ground systems division, while Senior Vice President Kevin Schnover leads the missile business, with specialized personnel deployed across each business line.

The restructuring is also pushing Hanwha Defense USA's role beyond its traditional focus on land-based defense into shipbuilding and maritime defense. Hanwha Systems disclosed Friday that it would sell its entire 60 percent stake in Hanwha Philly Shipyard to Hanwha Defense USA for 325.1 billion won ($239 million), with the transaction set to close Oct. 31. The move is intended to bring Hanwha Philly Shipyard under the Hanwha Defense USA umbrella, enabling integrated management of both land and maritime defense operations within the United States.

Hanwha Defense USA is also pursuing further acquisitions to expand its US shipbuilding business. It is currently bidding for Austal USA, the American subsidiary of Australian shipbuilding and defense company Austal. A successful acquisition would add to its domestic shipbuilding production base and broaden a local portfolio spanning both land and maritime defense.

Industry analysts say the simultaneous expansion of land and maritime operations could strengthen Hanwha's negotiating position in the US market. When pursuing contracts with the US government, the company would be able to present local production facilities, supply chains and maintenance, repair and overhaul capabilities as a single integrated package. A unified command structure is also expected to be advantageous when seeking the various government approvals needed for business expansion.

Hanwha Defense USA's public-facing activities are expanding as well. The company plans to participate in AUSA 2026, hosted by the Association of the United States Army next month. Last year, Hanwha Aerospace and Hanwha Systems each attended separately, but this year the US subsidiary will take the lead. "The US defense business is moving toward being organized around Hanwha Defense USA," a Hanwha Group official said. "We plan to unify the governance structure where necessary to manage our US operations."