Hanwha Defense recruits local talent
Hurrying to build a factory in Arkansas, USA
Korean defense companies are looking for opportunities to enter the U.S. ground weapons market. Following its recent securing of a prototype supply contract for the U.S. Army’s wheeled mobile tactical cannon (MTC) project, Hanwha Aerospace is now shifting its focus to ammunition, guided weapons, and unmanned vehicles.
According to industry sources, Hanwha Defense USA, the U.S. subsidiary of Hanwha Aerospace, recently signed a contract with the U.S. Army to develop MTC prototypes. The contract, including options, is valued at USD 262.9 million, covering the supply of six K9MH prototypes, which modified K9 into a wheeled version, and securing an option to supply additional 12 units.
Ammunition supply is considered to be the next stage. Although the United States possesses production capabilities, the pace of production expansion falls short of targets. Last January, Hanwha Defense USA signed a lease agreement with the U.S. Army for idle land at the Pine Bluff Arsenal in Arkansas and decided to invest USD 1.3 billion (approximately KRW 1.9 trillion) to build propellant and high-energy material production facilities.
The inventory of interceptor missiles is a variable in the guided weapon sector. The Center for Strategic and International Studies in Washington, D.C. analyzed that the U.S. inventory of Patriot interceptor missiles has significantly decreased. Hanwha Aerospace was tasked with developing ballistic missile interceptors for the L-SAM, a long-range surface-to-air missile, and secured the subsequent L-SAM-II project, thereby establishing its capability to develop interceptors.
LIG D&A is preparing to enter the U.S. market with its 2.75-inch guided rocket ‘Bigung,’ which was selected for the U.S. Department of Defense’s foreign comparative testing (FCT) in 2019. It has subsequently undergone testing and evaluation in accordance with U.S. military requirements.
The situation is different in sectors where the United States already possesses supply capabilities. The U.S. Army’s main battle tank is the M1 Abrams, manufactured by General Dynamics Land Systems. Accordingly, Hyundai Rotem is placing more emphasis on targeting Europe, the Middle East, and Latin America instead of entering the U.S. market with Korea’s K2 tanks. However, there is speculation that it may enter the maintenance, repair, and overhaul (MRO) sector for weapon systems currently operated by the United States.
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