Hanwha Aerospace announced on the 30th that it had signed a KRW 5.6 trillion contract (third execution contract) in Poland to supply additional guided missiles for the Chunmoo multiple launch guided weapon system. The company stated that it succeeded in winning the large-scale order by responding to Europe’s defense industrial bloc formation, backed by the government’s proactive defense export diplomacy.

In October, President Lee Jae-myung dispatched Chief Presidential Secretary Kang Hoon-sik to Poland as a special envoy for strategic economic cooperation to reinforce the two countries’ commitment to defense industry cooperation. At the time, Kang reportedly asked Polish Deputy Prime Minister and Minister of National Defence Władysław Kosiniak-Kamysz to ensure that a local production contract would be concluded within the year. Last month, ahead of a summit with the United Arab Emirates (UAE), Kang was sent to the UAE and Saudi Arabia as a special envoy for defense industry cooperation, laying the groundwork for more than USD 15 billion (about KRW 21.5085 trillion) in defense exports. There is an assessment that the government’s full diplomatic support is becoming a key driver of defense exports, including the Chunmoo contract. This contract was signed through a consortium with Hanwha-WB Advanced System (HWB, Hanwha-WB Advanced System), a joint venture (JV) established in October this year by Hanwha Aerospace and Polish defense company WB Electronics (Electronics) through co-investment. The CGR-080 guided missiles to be produced at HWB’s dedicated production plant, which will be built in Poland, are scheduled to be delivered to the Polish Armed Forces.

The signing ceremony, held on the 29th (local time) at the Polish Army Museum in Warsaw, was attended by Hanwha Aerospace CEO Sohn Jae-il, Presidential Chief of Staff Kang Hoon-sik, First Deputy Director of the National Security Office Kim Hyun-chong, Defense Acquisition Program Administration Commissioner Lee Yong-chul, and Ministry of National Defense Resource Management Office Director Won Jong-dae, among other government officials. From the Polish side, Deputy Prime Minister Władysław Kosiniak-Kamysz, Deputy Minister of National Defence Paweł Bejda, Armament Agency President Artur Kuptel, and WB Group Chairman Piotr Wojciech participated. In a congratulatory address at the signing ceremony, Chief of Staff Kang Hoon-sik stated, “The third Chunmoo contract goes beyond the simple model of producing weapons in Korea and exporting them to Poland, and instead adopts a model in which a joint venture builds a factory in Poland and manufactures the products locally,” adding, “Just as cooperation between the two countries in the political, economic, and security fields has continued to develop, cooperation in the defense industry has also entered a new phase.” He continued, “It is hoped that the trust built in the security realm will extend to industry and that industrial cooperation will further expand into cooperation between future generations, establishing a virtuous cycle,” and added, “Korea will be the strongest partner, unwavering in the face of any challenge.” Hanwha Aerospace signed a framework contract with the Polish government in 2022 for the export of Chunmoo launchers and guided missiles. In November of that year, it signed the first execution contract worth about KRW 5 trillion, followed by the second execution contract worth about KRW 2 trillion last year. The latest third execution contract is seen as particularly significant, as it was concluded amid intensifying “European defense bloc formation,” in which the European Union (EU), through the Secure Action for Europe fund, is encouraging priority purchases of European-made weapons. By establishing a local joint venture early on, Hanwha proactively responded to this trend, and the Korean government’s sales diplomacy support generated a synergy effect.

Hanwha Aerospace CEO Sohn Jae-il said, “We express deep gratitude for the comprehensive support and efforts at the national level,” adding, “Hanwha Aerospace will do its utmost to ensure that K-defense contributes to strengthening the Republic of Korea’s security.”

Popular News