Dong Kwan Kim, Hanwha Vice Chairman, Heads to Australia This Week [Yang Nakgyu's Defence Club]

Visit to Ground Weapon Production Facility in Geelong and Austal

Leveraging Australian Base for Expansion into U.S. Maritime and Defense Markets

Dong Kwan Kim, Vice Chairman of Hanwha Group, and Jaeil Son, CEO of Hanwha Aerospace, have visited Australia. Following the commencement of local production of self-propelled howitzers, Hanwha has secured a large-scale contract through Austal, a shipbuilding and defense company it acquired, to further strengthen its position in the Australian defense market.

Infantry Fighting Vehicle Redback Produced in Australia Photo by Yonhap News

According to industry sources on March 4, "Vice Chairman Kim and CEO Son are scheduled to inspect Hanwha-related defense facilities in Australia and are visiting to devise strategies for entering the U.S. defense market through the Australian defense sector."

Vice Chairman Kim will first visit the city of Geelong, Australia. On February 26, an AS9 self-propelled howitzer rollout ceremony was held at the H-ACE (Hanwha Armoured vehicle Centre of Excellence) in Geelong, marking the beginning of the local production trend in the defense industry. The AS9 is a variant of the K9 self-propelled howitzer, which holds over 50% of the global market share, modified to meet the needs of the Australian Army. This rollout represents a transition beyond simple exports to the stage of manufacturing and supplying weapon systems directly in overseas markets.

H-ACE, completed in August 2024, is the first overseas production base established by a South Korean defense company. Situated on a 150,000-square-meter site, it features 11 facilities, including the main building, production wing, test track, and firing range. Hanwha Aerospace plans to produce 30 AS9 howitzers and 15 AS10 ammunition resupply vehicles here for delivery to the Australian Army. The first Australian-made AS10 ammunition resupply vehicle is also scheduled to be released within this year.

Hanwha is also making significant strides in the shipbuilding and marine sector. Last month, Austal, the Australian shipbuilding and defense company in which Hanwha Group is the largest shareholder (with a 19.9% stake), secured a contract worth 4 trillion won for special-purpose vessels in Australia. This is the largest contract Austal has ever won in Australia. With this deal, Austal's order backlog has grown to 18 trillion won, securing enough work for 10 years. Austal operates shipyards in Henderson, Australia; Mobile, Alabama; and San Diego, California, in the United States. It is expected that Austal will become a key base for Hanwha Group's overseas shipbuilding and defense business expansion.

This contract, valued at 4 billion Australian dollars (approximately 4.1045 trillion won), is for the construction of eight large landing craft (LCH). Each LCH is 100 meters long, 16 meters wide, and has a displacement of approximately 4,000 tons. They can carry more than 200 troops and nine Redback armored vehicles produced by Hanwha Aerospace.

Austal is playing a central role in the Australian government's "strategic shipbuilding" initiative. In the United States, Austal is engaged in the construction and maintenance, repair, and overhaul (MRO) of vessels for the U.S. Navy and Coast Guard. Austal's revenue is increasing; in the first half of the current fiscal year (July-December 2025), sales reached 1.1 billion Australian dollars (about 1.1218 trillion won), up 33.4% from 825.7 million Australian dollars during the same period last year.

Hanwha Group plans to leverage Austal to participate in major projects such as Australia's next-generation frigate program and the establishment of nuclear-powered submarine support infrastructure. The company is also considering ways to use Austal's U.S. presence to win more contracts for U.S. military vessels and to integrate the weapons, sensors, and system integration capabilities of Hanwha Aerospace and Hanwha Systems.

An industry insider commented, "Combining ship platforms (shipbuilding) with onboard systems (weapons and sensors) could create considerable synergy," adding, "Going forward, we plan to accelerate efforts to target the AUKUS (U.S., Australia, U.K.) and Five Eyes (U.S., U.K., Canada, Australia, New Zealand) markets in particular."

This content was produced with the assistance of AI translation services.