In CHRISTCHURCH, New Zealand, South Korean firm Hanwha Ocean’s bid to buy out Australian shipbuilder Austal has analysts considering the benefits of such a deal. Analyst Jennifer Parker sees opportunities in Australia’s continuous shipbuilding efforts despite regulatory obstacles like approval from Australia’s Foreign Investment Review Board (FIRB).
Hanwha’s acquisition of Austal could increase chances of winning a competition for building frigates, as they are involved in the FFX-III frigate project. Hanwha also desires a foothold in the Five Eyes market, including Australia, New Zealand, Canada, Britain, and the United States, given the industrial capacity in those countries.
Austal already has a pilot agreement with Australia’s Department of Defence and could play a strategic role in Western Australia. The potential partnership could signal Australia’s commitment to regional partnerships and relations with China. Austal is open to further engagement if Hanwha can provide clarity on regulatory approval for the transaction.
Analyst Gordon Arthur, based in New Zealand, covers Asia for Defense News, attending military exercises and defense exhibitions in the Asia-Pacific region.
