[Edaily Marketin LEE GEON-EOM Reporter] HANWHA SOLUTIONS(009830)It has been confirmed that Hanwha Solutions has sold its U.S.-based high-pressure tank manufacturing subsidiary, “Hanwha Cimarron LLC,” to Hanwha Defense USA, the U.S. defense subsidiary of HANWHA AEROSPACE(012450).

This move is interpreted as HANWHA SOLUTIONS’ effort to secure liquidity by selling non-core assets to affiliated companies within the group, as its financial burden has increased due to sluggish performance in its core businesses, such as solar power and petrochemicals. Observers also note that the group as a whole can expect synergies from consolidating its North American aerospace and defense value chains under one umbrella.

According to the Financial Supervisory Service’s electronic disclosure system on the 13th, HANWHA SOLUTIONS sold its entire 100% stake in Hanwha Cimaron, its U.S.-based high-pressure tank subsidiary, to Hanwha Defense USA on the 30th of last month. The sale price totaled 59 billion won.

Hanwha Cimaron is a manufacturer of ultra-high-pressure composite tanks founded by an engineer formerly with the National Aeronautics and Space Administration (NASA). HANWHA SOLUTIONS had previously acquired Hanwha Cimaron in late 2020 to expand its hydrogen ecosystem. The company is currently recognized for its advanced technological capabilities not only in hydrogen transport tube trailers but also in ultra-high-pressure tanks for space launch vehicles, defense, and marine applications.

HANWHA SOLUTIONS’ decision to sell Hanwha Shimaron is believed to have been influenced by a slowdown in its core business and the resulting financial burden. Analysts suggest the company decided to sell the asset to proactively divest non-core assets and secure cash while adjusting the pace of investment in hydrogen infrastructure, thereby strengthening its financial resilience to absorb external shocks.

HANWHA SOLUTIONS’ debt burden exceeds appropriate levels. As of the end of the third quarter of this year, HANWHA SOLUTIONS’ total debt stood at 13.5619 trillion won, while net debt reached 11.0937 trillion won. Although these figures decreased by 9.5% and 11.3%, respectively, compared to the end of last year, the “yellow light” signaling financial health concerns remains on. During the same period, HANWHA SOLUTIONS’ debt-to-equity ratio stood at 40.7% and its net debt ratio at 86.8%, both exceeding the levels generally considered appropriate—30% and 50%, respectively.

Furthermore, the burden of short-term debt repayment appears to have actually increased. As of the end of the third quarter, short-term debt stood at 7.0527 trillion won, a 2.9% increase compared to the same period last year (6.8527 trillion won). Consequently, the proportion of short-term debt in total debt also rose by 4.5 percentage points (p), from 47.5% to 52.0%. With more than half of total debt consisting of short-term liabilities maturing within one year, analysts note that the need to secure liquidity has become even more urgent.

On the other hand, observers note that Hanwha Defense USA, the acquiring entity, has secured a strategic asset for expanding its defense and aerospace business in North America. Hanwha Defense USA is a U.S.-based subsidiary wholly owned by HANWHA AEROSPACE and serves as a key hub for targeting the North American market, where it manufactures and sells military equipment. Currently, CEO Michael Coulter is leading the company’s efforts to secure a dominant position in the U.S. defense market.

In fact, through this acquisition, Hanwha Defense USA has simultaneously secured Hanwha Simaron’s technology for propellant tanks used in space launch vehicles and high-pressure tanks for defense and marine applications, as well as a local production base in Alabama. Analysts predict that this will create significant synergies by enabling the company to meet the stringent local supply chain requirements and internalize core technological capabilities as it targets the U.S. defense and space markets.

Meanwhile, a HANWHA SOLUTIONS official explained, “We proceeded with the sale as part of a business restructuring aimed at focusing on our core businesses and improving our financial position.”