South Korea’s Hanwha has made a nonbinding offer valued at more than $1 billion to buy Austal USA, a builder of ships and submarine parts for the U.S. Navy.

Austal said the potential deal for its U.S. subsidiary is valued at between $1.05 billion and $1.2 billion. The acquisition would provide Hanwha with Austal’s Mobile, Ala., shipyard and access to major contracts that include some of America’s most sensitive naval programs.

The deal would broaden Hanwha’s footprint into U.S. defense manufacturing, giving the company a foothold in the naval shipbuilding sector and a direct link to high‑profile U.S. Navy projects.

If approved, the transaction would represent a significant expansion for Hanwha and could set a precedent for further cross‑border defense acquisitions in the region.