Woori Technology's defense business division is expected to achieve record-breaking performance. On the 27th, Woori Technology announced that its wholly-owned subsidiaries, Woori DS and Woori HQ, are anticipated to achieve their highest performance since establishment this year.
Woori DS exclusively supplies run-flat tires for military vehicles to major domestic defense companies such as Hyundai Rotem. Due to increased orders from clients, sales have grown at an average annual rate of over 10% from 2021 to 2023. The company explained that performance growth will accelerate as they have recently secured additional clients such as Company H and Company K following Hyundai Rotem.
Woori HQ is also experiencing sales growth based on the expansion of its clients' overseas exports and plans to accelerate performance growth through product diversification in the future. Woori HQ produces various products, including road wheels essential for the K2 tank and air conditioning systems for wheeled armored vehicles, supplying them to Hyundai Rotem and others. With expanded supply to existing clients, sales have surged at an average annual rate of over 15% in the past three years, and the company expects to achieve its first annual sales of 20 billion KRW. Additionally, further growth is anticipated due to the full-scale export of Hyundai Rotem's K2 tanks to Poland since last year.
Woori HQ is diversifying its business from core components of the K2 tank to auxiliary power units (APU) for tanks. The APU is a key component that not only enhances operational efficiency but also enables missions in low-noise and low-detection environments. Woori HQ is targeting the Indian market, which has recently increased investment in the tank sector, and is pursuing large-scale orders in cooperation with local companies.
A Woori Technology official stated, "As demand from major domestic defense companies, our key clients, surges, the performance of Woori DS and Woori HQ, which supply essential parts, continues to grow." He added, "The defense business division, which has maintained a performance growth rate in the 10% range, is expected to grow significantly starting from last year when domestic defense exports expanded, and we will maximize performance through product diversification via continuous research and development."
He continued, "Woori DS is pursuing a client diversification strategy following Hyundai Rotem by targeting Company H and Company K, and with the recent selection as a supplier for Company K's overseas export business, large-scale overseas exports of run-flat tires are expected to begin within this year, so we anticipate strong performance again this year." He added, "Woori HQ plans to continue growth by developing new businesses."
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