Hanwha Ocean Tops 1 Trillion Won in Operating Profit After 3 Years, Labor Tensions Loom Hanwha Ocean has reached 1 trillion won in operating profit three years after its launch, strengthening earnings stability across Hanwha Group as the shipbuilder focuses on LNG carriers and specialty vessels. According to the industry on Tuesday, Hanwha Ocean said in a regulatory filing that its 2025 consolidated revenue rose to 12.6884 trillion won and operating profit climbed to 1.1091 trillion won as sales of commercial and specialty ships increased. Revenue was up 18% from a year earlier, and operating profit jumped 366%, driven by higher LNG carrier and specialty-ship sales. It was the first time the company’s annual operating profit topped 1 trillion won since 2018, and the first such result since it joined Hanwha Group. Hanwha Group acquired Daewoo Shipbuilding & Marine Engineering in 2023 and relaunched it as Hanwha Ocean. After joining the group, Hanwha Ocean accelerated restructuring, ending three straight years of losses that began in 2021. It posted 237.8 billion won in operating profit in 2024, then expanded that figure by more than fivefold in 2025 to re-enter the “1 trillion won club.” The company credited a strategy of focusing on higher-value ships, including LNG carriers, specialty vessels and defense ships, while screening out orders with uncertain profitability and improving cost structure and production efficiency. Hanwha Ocean said it was the only South Korean shipbuilder to post more than $10 billion in orders last year. It said it has booked total orders of $10.05 billion so far, including 13 LNG carriers, 20 very large crude carriers and 17 container ships. The rebound has also lifted Hanwha Group’s valuation, the report said, as investors refocused on the group’s core businesses in defense, energy and shipbuilding and shares of key affiliates rose, pushing the group’s market capitalization above 150 trillion won. Hanwha Ocean gave a positive outlook for this year, citing expectations for revenue growth as high ship prices for LNG carriers and other vessels persist, and for steady profitability as the share of high-margin projects increases. Labor-management relations remain a key challenge. The company has said it plans to be the first in the shipbuilding industry to pay the same performance bonuses to prime contractors and subcontractors, but tensions have not fully eased at worksites. Some have warned that any gap between the principle of equal bonuses and the actual payment structure could reignite conflict. A business group official said, “Hanwha Ocean’s normalization has led not only to improved results at an individual affiliate but also to a revaluation of the group as a whole,” adding, “Uncertainty in labor-management relations over performance bonuses could become a burden for Hanwha Ocean ahead of major projects.”* This article has been translated by AI. 2026-02-04 17:18:00

Hanwha Ocean's 2025 profit nearly quadruples on LNG carrier, naval ship demand SEOUL, February 04 (AJP) - Hanwha Ocean's operating profit nearly quadrupled in 2025 from a year earlier, driven by strong sales of liquefied natural gas (LNG) carriers and special-purpose vessels. In a regulatory filing on Wednesday, the South Korean shipbuilder reported revenue of 12.69 trillion won ($9.5 billion) for 2025, up 18 percent from the previous year, while operating profit surged 366 percent to 1.11 trillion won. The company attributed the earnings improvement to increased deliveries of high-margin LNG carriers and growth in its defense-related ship business. Stabilized production boosted the contribution of LNG carriers within its commercial ship segment, while revenue from special-purpose vessels edged higher as construction progressed smoothly on the first three Jangbogo-III Batch-II submarines. Operating profit also benefited from a product mix shift toward higher-value vessels, improved productivity following production stabilization and continued cost-reduction efforts. Hanwha Ocean said that it has secured orders worth $10.05 billion so far this year, including contracts for 13 LNG carriers, 20 very large crude carriers and 17 container ships. Order intake increased from $8.98 billion a year earlier despite global orders for its core ship types falling to below 70 percent in vessel numbers, the company said. The shipbuilder also gave a positive outlook for the year ahead. A company official said revenue growth is expected to continue as vessel prices, particularly for LNG carriers, remain elevated, while profitability should stay solid as revenue increasingly comes from higher-return projects. Profitability is also expected to improve further as full-scale production begins on additional naval programs, including the second Jangbogo-III Batch-II submarine and the fifth and sixth Ulsan-class Batch-III frigates, alongside efforts to secure large overseas contracts, the official said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-02-04 14:55:01

Korea Zinc to develop next-generation battery material for drones, robots SEOUL, February 04 (AJP) - Korea Zinc said on Wednesday it has signed partnerships with two materials companies to develop composite copper foil, a next-generation battery component used for lightweight, high-performance batteries for drones and humanoid robots. The partnered firms are Taesung and Neo Battery Materials Korea. Korea Zinc said the three firms will jointly develop advanced battery technologies using composite copper foil for small mobility applications. Composite copper foil, used as an anode current collector in batteries, incorporates a polymer core and requires less copper than conventional copper foil. The structure reduces weight while maintaining performance and offers cost and safety advantages, according to the company. However, commercialization still requires improvements in production yield and the establishment of a stable mass-production system. Under the agreement, the companies will cooperate across the full development chain, from materials engineering and manufacturing processes to feasibility studies and product demonstrations. Planned work includes verification of composite copper foil, process development for battery cells using the material, production of small prototype batteries, and testing prototype small mobility devices such as drones and robots powered by the new batteries. Korea Zinc said the partnership is expected to strengthen the companies’ competitiveness in the emerging composite copper foil market. Market research firm Wise Guy Reports forecasts the global market will grow to $10.18 billion by 2032 from $6.88 billion in 2023. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-02-04 14:02:28

Hanwha Ocean posts 2025 operating profit of 1.1091 trillion won, up 366% Hanwha Ocean said its 2025 operating profit nearly quadrupled as revenue from commercial ships and naval vessels rose sharply. In an earnings filing on Tuesday, the company said 2025 revenue rose 18% from a year earlier to 12.6884 trillion won, while operating profit jumped 366% to 1.1091 trillion won. Hanwha Ocean cited higher sales of liquefied natural gas carriers and special-purpose vessels. It said a larger share of high-margin LNG carrier revenue, supported by more stable production, led growth in its commercial ship division. Revenue at its special ship division also edged up as production of the Jangbogo-III Batch-II submarines Nos. 1, 2 and 3 stayed on schedule, contributing to overall sales growth. The company said operating profit improved sharply on a shift toward more profitable products, productivity gains from production stabilization and continued cost-cutting efforts. Hanwha Ocean said it has won orders totaling US$10.05 billion so far, including 13 LNG carriers, 20 very large crude carriers and 17 container ships. It said orders increased from US$8.98 billion a year earlier despite a drop to below 70% in global newbuild orders for its main ship types, measured by the number of vessels, citing aggressive sales efforts and technological competitiveness. The company also gave an upbeat outlook for this year. A company official said revenue is expected to grow as high ship prices for LNG carriers and other vessels strengthen, and profitability should remain solid as higher-margin projects make up a larger share of sales. The official added that profitability is expected to improve further as production ramps up on the Jangbogo-III Batch-II submarine No. 2 and the Ulsan-class Batch-III frigates Nos. 5 and 6, along with efforts to win major overseas projects. 2026-02-04 13:54:00

Korea Zinc teams up to commercialize composite copper foil for drone, robot batteries Korea Zinc is partnering with Taesung and Neo Battery Materials Korea to speed commercialization of composite copper foil, a next-generation anode current collector used in batteries. The company said Tuesday it signed a memorandum of understanding with the two firms on Jan. 28 at its Onsan smelter to develop high-performance battery technology using composite copper foil for drones and robots. Attendees included Korea Zinc Onsan smelter chief Kim Seung Hyun and R&D center chief Choi Heon Sik, Taesung CEO Kim Jong Hak, and Neo Battery Materials Korea Vice President Jeong Jun Sik. Compared with conventional copper foil made only of copper, composite copper foil uses less copper and has a polymer core, which the companies said improves price competitiveness. They also said it is lighter while maintaining high density and offers safety advantages. Korea Zinc said commercialization still requires stable yields and a mass-production system. Under the MOU, the three companies will work across the full process, from materials development and manufacturing to feasibility checks and demonstrations. Planned steps include optimizing and verifying material performance; evaluating and improving processes for battery cells and stacks using the foil; making small battery prototypes; and producing and testing prototypes of small mobility devices such as drones and robots. The companies aim to build capabilities to compete in the composite copper foil market. Wise Guy Reports forecasts the global market will grow about 1.5 times, to US$10.18 billion in 2032 from US$6.88 billion in 2023. A Korea Zinc official said that if the partners successfully demonstrate prototypes of small mobility devices such as drones using composite copper foil by the end of this year, it would be the first such case among South Korean companies. The official said the effort would help diversify the company’s battery materials portfolio and secure technology to respond to market changes.* This article has been translated by AI. 2026-02-04 11:24:00

Samsung Heavy deepens Gulf ties with Qatar shipyard agreement SEOUL, February 04 (AJP) - Samsung Heavy Industries said Wednesday it has signed sign an agreement with Qatar Shipyard Technology Solutions (QSTS), a state-owned shipyard operator, to explore joint projects involving eco-friendly technologies. QSTS, located in eastern Qatar, is a subsidiary of Nakilat, the country’s state-owned shipping company and the world’s largest operator of liquefied natural gas (LNG) carriers. The yard has completed repair work on roughly 2,000 vessels, including LNG carriers, Samsung Heavy said. Under the agreement, the two companies will initially cooperate in ship retrofits and after-market services. They will also explore joint projects involving eco-friendly technologies, including decarbonization and energy-saving systems, onboard carbon-capture equipment, small offshore projects and newbuilds of specialized vessels. “Business cooperation with QSTS will be an important milestone in expanding our global operations,” Namgung Geumseong, vice president and head of Samsung Heavy’s shipyard business, said in a press release. “We aim to further strengthen our competitiveness through active global partnerships.” The MOU was signed on the sidelines of LNG 2026, an industry conference currently being held in Doha. Samsung Heavy Chief Executive Choi Seong-an and other executives attending the event also held discussions on potential cooperation with global energy companies, including Qatar LNG and ExxonMobil. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-02-04 09:39:02

South Korea’s Smaller Shipbuilders Run Full Docks as Orders Lift Results South Korea’s shipbuilding boom is spreading beyond the biggest yards to smaller builders, with docks effectively running at full capacity as a wave of orders secures years of work. Industry data released Monday showed shipyard utilization at HJ Heavy Industries, Daehan Shipbuilding and K Shipbuilding topped 100% last year. Utilization above 100% indicates expanded working hours, including holiday and night shifts, as the companies ramp up production after recent contract wins. HJ Heavy Industries, which builds both naval and commercial vessels, has been building a steady order backlog. With wins in naval work, including U.S. Navy ship maintenance, repair and overhaul, its dock at the Yeongdo shipyard in Busan is already booked through 2028. Its shipbuilding order backlog rose to about 2.1026 trillion won as of the third quarter of last year, more than doubling from 915.1 billion won in 2021. Daehan Shipbuilding has accelerated construction on the back of orders since the start of the year. In early January, it secured four Suezmax crude oil tankers from new customers, then added two more of the same type from a European shipowner. The company plans to lift revenue quickly by increasing dock turnover. K Shipbuilding’s utilization also exceeded 110%, a sharp increase from 93.47% in 2024. The expanding backlogs have translated into stronger earnings. HJ Heavy Industries posted operating profit of 67 billion won last year, up 824.8% from a year earlier, as shipbuilding revenue rose and profitability improved. Daehan Shipbuilding maintained operating margins in the 20% range for five straight quarters. On a consolidated basis, its 2025 revenue was 1.2281 trillion won and operating profit was 294.1 billion won, up 14.2% and 86.1%, respectively, from the prior year. K Shipbuilding has not yet finalized last year’s full results, but analysts point to improving utilization as orders increase. Its cumulative operating profit through the third quarter of last year was 84.7 billion won, more than four times the 15.8 billion won recorded a year earlier. Early this year, it also signed new shipbuilding contracts for four 50,000-ton petrochemical product carriers. Some in the market say the gains at smaller shipbuilders reflect structural change rather than a temporary upswing, as they move away from low-priced volume orders and focus on selectively winning higher value-added vessel types. “Smaller shipbuilders used to mainly fill gaps left by larger yards, but they have moved into a phase of focusing on higher value-added ship types,” an industry official said. “The biggest change is that profitability is improving even as dock utilization rises.” 2026-02-03 18:03:00

Hyundai Steel produces lower-carbon steel sheet for Hyundai Motor, Kia SEOUL, February 03 (AJP) - Hyundai Steel said Monday it has begun mass production of lower-carbon steel sheet that reduces carbon emissions by about 20 percent compared with conventional blast-furnace products, marking a key step in the company’s transition toward greener steelmaking. The company said it conducted extensive pre-verification work to stabilize operations and secure product quality ahead of launching its electric arc furnace–blast furnace hybrid production process. Since April 2023, Hyundai Steel has tested productivity for the lower-carbon steel sheet using an existing electric arc furnace at its Dangjin steelworks. Hyundai Steel has secured certification for 25 steel grades, including two grades of lower-carbon steel sheet now entering mass production. It plans to certify an additional 28 grades within the year, expanding the lineup to 53 grades. The rollout aligns with carbon-reduction roadmaps pursued by automakers within Hyundai Motor Group, the company said. Hyundai Motor and Kia plan to begin applying lower-carbon steel materials to selected models produced in South Korea and Europe starting this year. Hyundai Steel said it will supply key automotive steel sheet to those plants as lower-carbon products and gradually expand both product grades and supply volumes. The company is broadening the application of lower-carbon products beyond the auto sector. In automotive materials, Hyundai Steel is working with global carmakers and parts suppliers, while in energy steel it has completed fabrication and testing of lower-carbon heavy plate for offshore wind substructures, confirming material suitability with customers. A Hyundai Steel official said the company is leading the supply of lower-carbon products through its hybrid process combining electric arc furnace operations with blast-furnace technology. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-02-03 09:47:46

Samsung SDI swings to operating loss in 2025 on weak EV demand SEOUL, February 02 (AJP) - Samsung SDI swung to an operating loss in 2025 as a prolonged slowdown in electric-vehicle demand and shifting policy conditions in the United States and Europe weighed on performance, the battery maker said on Monday. In a regulatory filing, the company reported an operating loss of 1.72 trillion won for the year, reversing an operating profit of 363.3 billion won in 2024. Revenue fell 20 percent to 13.27 trillion won from 16.6 trillion won a year earlier. Fourth-quarter revenue reached 3.86 trillion won, up 26.4 percent from the previous quarter and 2.8 percent from a year earlier, while the operating loss narrowed to 299.2 billion won, roughly half the level recorded in the third quarter. Battery sales totaled 3.6 trillion won in the quarter, rising 28.4 percent quarter on quarter and 1.6 percent year on year. The battery division posted an operating loss of 338.5 billion won. Samsung SDI forecast that the global EV battery market excluding China will grow about 6 percent this year, citing looser green policies in North America and Europe and automakers’ adjustments to electrification strategies. Demand for ESS batteries is expected to continue rising for power-grid applications and backup systems, supported by expanding investment in artificial intelligence data centers. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-02-02 14:37:35

Hanwha Ocean hosts Canadian officials as submarine bid advances SEOUL, February 02 (AJP) - A Canadian business and government delegation led by Stephen Fuhr, Canada’s minister of state for defense procurement, visited Hanwha Ocean’s shipyard in Geoje on Monday as Ottawa advances plans for its Canadian Patrol Submarine Project (CPSP). Fuhr, who oversees procurement for the program estimated at about 60 trillion won, toured Hanwha Ocean’s assembly facilities with roughly 30 Canadian government and industry representatives, reviewing automated production systems including robotic welding lines. Executives from major Canadian shipbuilders — Ontario Shipyard, Irving Shipbuilding, Davie and Seaspan Shipyard — also joined the visit. The delegation later boarded the submarine Jang Young-sil, currently undergoing sea trials, to review its operational capabilities. Hanwha Ocean CEO Kim Hee-cheol and company executives, along with South Korea’s Vice Defense Minister Lee Doo-hee and other officials, guided the tour. The minister also visited construction areas where follow-on submarines are being built, showing interest in the yard’s production capacity and advanced manufacturing systems. Fuhr coordinates Canada’s defense procurement policy and represents the government on major projects including CPSP, overseeing strategic requirements, industrial participation and cooperation with allies. He also supervises the Defense Investment Agency, launched last year as part of efforts to streamline and accelerate military procurement. Hanwha Ocean and affiliate Hanwha Systems signed memorandums of understanding on Jan. 26 in Canada with five local firms in sectors including steel, artificial intelligence and space, outlining cooperation and investment plans to support a CPSP bid. Kim described Fuhr’s visit as an on-site review of Hanwha Ocean’s proposal, adding the company aims to provide the Royal Canadian Navy with an optimal solution while building long-term partnerships with Canadian industry. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-02-02 14:15:27