Naval Technology

Daily Newsletter

24 November 2023

Daily Newsletter

Signal: Babcock and Hanwha Aerospace sign MOU

Babcock and Hanwha Aerospace have signed a memorandum of understanding (MOU) to explore global business development projects.

Babcock and Hanwha Aerospace have signed an MOU for the exploration of global business development opportunities in the land, air and sea domains, the companies announced 22 November, during the visit to the UK by Korean President Yoon suk Yeol.

Babcock is currently working with Hanwha on its Weapon Handling System for the Korean submarine programme and has an existing relationship with Hanwha Ocean through joint work on the Poland and Philippine submarine projects.

In support of the Canadian Patrol Submarine Project and the current Victoria In Service Support Contract (VISSC), Babcock and Hanwha Ocean signed a technical cooperation agreement for the Canadian Patrol Submarine Project, established by the Canadian Department of National Defence to research procurement options for its next-generation submarine.

While Babcock provides a range of services including ship design and engineering, and maintenance, repair, overhaul and upgrade services for warships, it also has a reportable aviation business segment that has seen a stagnant venue stream across the past four years.

Babcock International Group aviation segment revenue from 2017 to 2023 shows a significant drop in 2020 after years of growth, followed by four years of almost-steady returns. Credit: GlobalData Intelligence Centre.

Hanwha Aerospace's fiscal year ending in December 2022 (FY2022) had reported sales of Won6.54trn, reflecting a growth of 18% compared with the previous fiscal year. The company has a primary focus on the production of various engine components such as compressors, combustor modules and low-pressure turbine modules.

Hanwha Aerospace has experienced a rise in sales growth over the past two years, after nearly levelling off in 2020. Credit: GlobalData Intelligence Centre.

As well as this new relationship with Babcock, Hanwha engages in a collaborative cooperation with Pratt & Whitney to jointly develop aircraft engines. Headquartered in Seoul, South Korea, the company also has a presence in several other countries, including Brazil, China, Iraq, Malaysia, Qatar, Singapore, the United Arab Emirates, the UK and the US.

Our signals coverage is powered by GlobalData’s Thematic Engine, which tags millions of data items across six alternative datasets – patents, jobs, deals, company filings, social media mentions and news – to themes, sectors and companies. These signals enhance our predictive capabilities, helping us to identify the most disruptive threats across each of the sectors we cover and the companies best placed to succeed.

Hypersonics see continued development across 2023

The US, Russia, and China are all testing hypersonic technology, generating fears of escalating global competition for weaponry that has the potential to render current defenses inadequate. Aside from military applications, hypersonic technology promises extremely fast commercial flight. However, with the future of commercial aviation looking increasingly green, and with inherent challenges to the commercial hypersonic profit model, it appears unlikely that hypersonic passenger flights will emerge as a major market.