Korean defense giant Hanwha Aerospace set to build armored vehicle factory in Romania
Hanwha Aerospace, the largest defense company in South Korea, will begin construction of an armored vehicle factory in Romania at the beginning of next year, according to News.ro. The group plans to make Romania a regional hub for all Hanwha's land systems in Europe.
Back in July, Hanwha signed a USD 1 billion contract to supply Romania with 54 K9 self-propelled howitzers and 36 K10 ammunition supply vehicles, as part of a global contract that also includes dozens of wheeled support vehicles along with the corresponding ammunition.
Construction of the factory is expected to start at the beginning of next year, but the location has not been disclosed yet.
Last month, Hanwha Aerospace inaugurated a production unit for armored vehicles (H-ACE) in Geelong, Australia. This factory marks the first foreign production facility established by a South Korean defense company. The factory in Australia is similar to the one Hanwha Aerospace plans to build in Romania following the signing of the contract for 54 155mm howitzers and support vehicles for the Ministry of Defense.
“Hanwha is ready to replicate this success in Romania, as the authorities in Bucharest signed a USD 1 billion contract with Hanwha in July for the production of 54 K9 ‘Thunder’ self-propelled howitzers and 36 K10 ammunition reloading vehicles. According to the contract, Hanwha Aerospace is determined to build large-scale production and maintenance facilities in Romania to provide not only cutting-edge platforms but also economic and industrial benefits,” Peter Bae, Vice President of Hanwha Aerospace Europe, told News.ro.
As part of the expansion of the partnership with Romania, Hanwha Aerospace is offering the Redback for the modernization of the Romanian Army's IFV. Redback is the most advanced IFV (infantry fighting vehicle) in the world, with a range of innovative technologies, including composite rubber tracks, a hard-kill active protection system, and a transparent display.
Company representatives state that they are ready to establish a deep industrial cooperation with Romania.
“A crucial part of our proposal includes establishing a production facility along with a Maintenance Repair Operations (MRO) Center of Excellence (CoE), integrating Romanian businesses into Hanwha's global supply chain,” said Peter Bae. He emphasized that Romania will become a regional hub for all Hanwha’s land systems in Europe.
“The opening of the Hanwha Armored Vehicles Center of Excellence (H-ACE) represents Hanwha’s firm determination to further expand its footprint in the global market. At the same time, it is a clear testament to Hanwha's commitment to localization efforts to bring maximum economic benefits to the local industry, offering not only cutting-edge platforms but also creating and maintaining jobs,” the company representative added.
The H-ACE Center includes several assembly lines, both for self-propelled howitzers and infantry fighting vehicles, a 1.5 km test track, a training wing, and a research and development unit. Regarding the economic impact, it is anticipated that this location will support over 2,000 jobs over the course of the LAND 8116 and LAND 400 Phase 3 programs.
The LAND 8116 program is for the production of 30 AS9 self-propelled howitzers (the Australian variant of K9) and AS10 armored ammunition supply vehicles (the Australian variant of K10), while LAND 400 Phase 3 is for the production of 129 Redback infantry fighting vehicles.
Romania has become the 10th country to use the K9 howitzer, increasing the international community of users of the 155 mm/52 caliber self-propelled tracked howitzer, which represents over 50% of the global market for self-propelled howitzers. After Norway and Australia, Romania will also be the third global operator of the K10, which allows for fully automated reloading capacity to maximize artillery efficiency.
Founded in 1977, Hanwha Aerospace is a global aerospace and defense company offering a wide portfolio of world-class products and services. These include land combat vehicles such as the K9 self-propelled howitzer, the Redback infantry fighting vehicle, and the Chunmoo K239 multiple launch rocket system. The company also produces precision-guided munitions and engines for airborne, space, and maritime platforms.
(Photo source: Hanwha Aerospace on Facebook)
