Hanwha Engine Expands into Electric Propulsion with $190 Million SEAM Acquisition
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A South Korean maritime engine manufacturer is considerably bolstering its position in the rapidly evolving green technology sector with the acquisition of a leading Norwegian electric propulsion firm. The move underscores a broader industry trend toward low-emission and zero-emission technologies in the shipping industry.
Hanwha Engine, a subsidiary of the Hanwha Group, announced an agreement on Thursday to acquire SEAM, a Norwegian company specializing in electric propulsion and power automation, for approximately NOK 2 billion (roughly $190 million USD).The deal remains subject to approval from the Norwegian Competition Authority.
Strengthening Position in Green Maritime Technology
According to a company release, hanwha Engine intends to integrate its established dual-fuel engine technology with SEAM’s expertise in electric propulsion systems. This strategic combination aims to broaden Hanwha Engine’s portfolio, offering a more comprehensive range of propulsion solutions to a wider customer base. SEAM currently holds a commanding 40% market share in Norway for energy storage systems, control systems, and motor integration solutions for electric vessels.
“This acquisition is a pivotal step in our commitment to providing sustainable solutions for the maritime industry,” stated a senior official. “By combining our strengths, we can accelerate the advancement and deployment of next-generation propulsion technologies.”
Expanding European Footprint and Market Reach
The acquisition will provide Hanwha Engine with a stronger foothold in the European market. The company plans to leverage this presence to offer dual-fuel engine solutions for medium-to-large vessels, while simultaneously providing electric and hybrid propulsion systems for smaller-to-medium sized ships. Hanwha Engine already maintains a significant market position in marine batteries and fuel cell systems, catering to both newbuild projects and the retrofit of existing vessels.
From HSD Engine to Hanwha Engine: A Recent Transformation
The company, formerly known as HSD Engine, has a long history as a major player in the marine engine industry.Established in 1983, HSD Engine rose to become the world’s second-largest manufacturer of marine low-speed main engines. In February 2023, the Hanwha Group entered into an acquisition agreement, completing the purchase in February 2024 and afterward rebranding the company as Hanwha Engine. This recent transformation signals a clear strategic shift towards diversification and a commitment to sustainable maritime solutions.
The acquisition of SEAM represents a significant investment in the future of maritime propulsion, positioning Hanwha Engine as a key innovator in the transition to a greener shipping industry.
Why: Hanwha Engine acquired SEAM to expand its portfolio of green maritime technologies,specifically in electric propulsion,and strengthen its position in the European market. The acquisition aligns with the broader industry trend toward low- and zero-emission shipping solutions.
who: Hanwha Engine, a South Korean maritime engine manufacturer and subsidiary of the Hanwha Group, acquired SEAM, a Norwegian company specializing in electric propulsion and power automation.
What: Hanwha Engine agreed to purchase SEAM for approximately NOK 2 billion (roughly $190 million USD). The deal is pending approval from the Norwegian Competition Authority.
How did it end?: The acquisition agreement was announced on Thursday, February 29, 2024, with the purchase completed in February 2024 after the initial agreement in February 2023. The deal is currently awaiting approval from the Norwegian Competition Authority, after which the integration of the two companies will begin.
