Hanwha Engine has signed an agreement to acquire 100% of the shares of Norway-based electric propulsion specialist SEAM, in a transaction valued at approximately US$195m.
The agreement was signed on December 19 and marks Hanwha Engine’s entry into the Northern European marine electric propulsion market. The company says the acquisition is intended to expand its capabilities in electric, hybrid and low-emission propulsion systems.
SEAM supplies electric propulsion and power automation solutions for the maritime sector, including energy storage systems, electric motors and proprietary power management and automation software. The company is headquartered in Norway and holds an estimated 40% share of the Norwegian electric vessel market, one of the world’s most developed markets for battery-powered and hybrid ships.
Hanwha Engine says the acquisition will enable it to combine its internal combustion engine manufacturing expertise with SEAM’s electric propulsion technologies, to offer a broader range of propulsion solutions across vessel sizes and operating profiles.
“This acquisition enables us to broaden our propulsion portfolio and enhance our ability to serve future-oriented markets,” said Jong Seo Kim, CEO of Hanwha Engine. “SEAM has specialized expertise in electric propulsion and power automation systems, and together we will be well-positioned to respond to evolving environmental standards and customer needs.”
Following the acquisition, Hanwha Engine plans to apply dual-fuel engines to mid- to large-sized vessels, while offering electric and hybrid propulsion systems for small- to mid-size vessels. The company says this approach reflects its strategy to become an integrated propulsion solution provider as emissions regulations tighten across global shipping markets.
SEAM is recognized in the European maritime sector for its system integration capabilities and has delivered electric and hybrid solutions for a wide range of vessel types, including ferries, offshore vessels and workboats.
By leveraging SEAM’s established customer base and market position, Hanwha Engine expects to expand both its new-build and aftermarket business in Europe, particularly in the growing market for low- and zero-emission vessels.
In related news, Western Australia awards contract for manufacture of the state’s first electric ferry fleet