Kenkoa Aero and Gyeongnam Province Sign MOU... "40 Billion Won Invested in Factory Expansion... 130 New Hires"

Kenkorea Aerospace is set to begin full-scale factory expansion as it secures new orders in defense and global aerospace this year.

On the 22nd, Kenkorea Aerospace announced that it signed an investment agreement with Gyeongnam Province and Sacheon City to "revitalize the aerospace industry and local economy."

Based on this investment agreement, Gyeongnam Province and Sacheon City promised full support, including infrastructure, to the companies that signed the agreement.

Through this investment agreement, Kenkorea plans to invest a total of 40 billion KRW in its 1st and 2nd factories to actively expand equipment and facilities. As new orders continue from domestic and international clients such as Embraer, Northrop Grumman, Hanwha Systems, and Korea Aerospace Industries (KAI) in both aerospace defense and commercial aircraft sectors, expansion is essential to handle the secured order volume.

The order streak is expected to continue in the second half of this year. With countries around the world significantly increasing defense budgets, both global orders and production in the aerospace defense sector, which accounts for the largest financial share, are rapidly growing. Kenkorea is not only expanding business opportunities with leading U.S. defense companies such as Lockheed Martin and Boeing Defense but also continuing collaborations with major domestic corporations.

While the global aerospace supply chain has not yet fully recovered, the company explained that as the supply chain is rapidly reorganizing, Kenkorea, which maintained and expanded production capacity during the pandemic period, is facing a great opportunity.

A company representative stated, "Among the defense sectors of land, sea, and air, the aerospace defense sector has the largest budget scale," adding, "As the global defense market rapidly expands, opportunities for orders are also greatly increasing."

They continued, "Defense exports are not only about exporting complete aircraft; playing a key role in the supply chain of military aircraft produced in the U.S. is also a significant part of K-defense exports," and added, "This expansion is an investment to secure production facilities for projects that have been contracted or confirmed so far, and since negotiations are ongoing for projects with very high additional order potential, plans for a new 3rd factory investment beyond this investment are also being carefully reviewed."

Meanwhile, the total investment amount through this agreement is approximately 382.3 billion KRW. A total of 11 companies are included, spanning aerospace, metal and machinery, and automotive sectors.