Aero Integrated with Defense
First Execution Contract with Polish Government
Cooperating with PGZ Group for First European Supply Next Year
[Asia Economy Reporter Choi Seoyoon] Hanwha Aerospace, which merged with Hanwha Defense, has signed an export contract for the Cheonmu multiple launch rocket system with the Polish government. Following the K9 self-propelled howitzer export contract worth 3.2 trillion KRW signed in August, the Cheonmu contract has pushed Poland-bound exports beyond 8 trillion KRW this year alone.
On the 4th, Hanwha Aerospace announced that it signed a first-phase execution contract worth approximately 3.5 billion USD (about 5 trillion KRW) with the Polish government in Warsaw, Poland, to supply Cheonmu launchers, guided missiles, and long-range projectiles.
Following the Basic Contract, First Export Volume Confirmed... “Second Contract to be Pursued by Second Half of Next Year”
This contract concretizes the quantities, amounts, and delivery schedules of the export equipment based on the basic contract signed with Poland on the 19th of last month. Accordingly, Hanwha Aerospace will supply Cheonmu to the European region for the first time starting next year.
The signing ceremony was attended by Hanwha Aerospace CEO Son Jae-il, Polish Deputy Prime Minister and Minister of National Defence Mariusz Błaszczak, Defense Acquisition Program Administration Commissioner Eom Dong-hwan, and Director of Defense Resources Management Office Yoo Dong-jun, among others.
Hanwha Aerospace and the Polish government plan to conclude a second execution contract through additional negotiations by the end of next year.
The second contract is expected to include local cooperation with Polish defense companies such as WB for fire control systems, Jelcz for transport trucks, and HSW for system assembly. Through this, they aim to develop next-generation weapon systems with Poland and strengthen defense industry cooperation, including joint entry into third countries.
Son Jae-il, CEO of Hanwha Aerospace, said, "We sincerely thank the Ministry of National Defense, Defense Acquisition Program Administration, Agency for Defense Development, Defense Technology Quality Institute, and other military and government agencies for their active support in exporting Cheonmu," adding, "We will faithfully execute the Cheonmu contract and further solidify our partnership with Poland."
Meanwhile, Hanwha Aerospace is also actively negotiating the export of the next-generation armored vehicle Redback to Poland, following the K9 self-propelled howitzer and Cheonmu.
Redback already received favorable evaluations last month during live-fire exercises including stationary, on-the-move, and slope firing, as well as demonstrations of off-road and rugged terrain mobility. Given that the Polish Ministry of National Defence has repeatedly emphasized the need for medium-sized armored vehicles, the export potential of Redback is increasing.
‘Integrated Aero’ Merging Defense Subsidiary... Growing into a National Flagship Defense Company
On the 1st, Hanwha Aerospace, which merged with its existing subsidiary Hanwha Defense, plans to additionally acquire and merge the defense division of Hanwha Corporation in March next year.
With the ongoing due diligence of Daewoo Shipbuilding & Marine Engineering, which will also become a subsidiary, Hanwha Aerospace will secure product lines across land, sea, air, and space sectors. The market will also expand beyond domestic boundaries into the global market, aiming to grow as Korea’s representative global defense company.
The Cheonmu system being exported this time was previously produced by various Hanwha Group companies separately handling guided missiles, launchers, etc., but the integrated Hanwha Aerospace now oversees all areas from orders to production, significantly enhancing business feasibility.
A Hanwha Aerospace official stated, “Taking this merger as an opportunity, we will promote ‘defense package’ exports and actively enter the maintenance market to maximize synergy,” adding, “We will also continue investing in space business to simultaneously secure new growth engines.”
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