UPDATE: Japan’s concerns are mounting as South Korean firm Hanwha seeks to increase its stake in West Australian shipbuilder Austal to nearly 20 percent. This takeover bid is particularly alarming as Austal is poised to construct advanced Japanese Mogami frigates for the Royal Australian Navy, marking a critical phase in defense collaboration between Japan and Australia.
During a press conference at the National Press Club in Canberra earlier today, Japanese Ambassador Suzuki Kazuhiro expressed his apprehensions regarding the implications of a Korean-owned company managing such a significant military project. “If that decision is made, probably there will be some reaction from the Japanese government,” he stated, highlighting the sensitive nature of this investment, which is currently under review by Australia’s Foreign Investment Review Board (FIRB).
Hanwha, currently holding a 9.9 percent stake in Austal, aims to boost its ownership to 19.9 percent. The company is confident that its proposal will receive the green light from Australian authorities, despite concerns from the Japanese side about national security and military integrity.
Ambassador Kazuhiro emphasized the importance of the joint project between Japan and Australia, saying, “This project, Mogami frigate, is a joint project between Japan and Australia, and both of the national interests are closely involved.” He reassured the audience of defense industry leaders that he trusts the Australian government to manage these foreign investment issues appropriately.
When pressed about whether Japan had officially communicated its views during the review process, Kazuhiro admitted, “I don’t think that has happened yet, yes. But I will trust Australia.” His comments reflect the delicate balance of international relations and defense partnerships as global dynamics shift.
As the FIRB reviews Hanwha’s bid, stakeholders will be watching closely for any developments. The outcome could significantly impact not only Austal’s future projects but also the broader defense collaboration between Japan and Australia.
In October, Austal Group Chair Richard Spencer pointed out that, despite ongoing discussions, Hanwha has yet to demonstrate how it can add value to the West Australian shipbuilder. The potential ramifications of this takeover bid are profound, as it intertwines corporate interests with national security in the Indo-Pacific region.
Stay tuned as this story develops, with critical implications for both Japan and Australia on the horizon.
