Michael Coulter "Defense Trends Shift from Technology to 'Local Production'"

[Financial News] Michael Coulter, CEO of Hanwha Global Defense, recently pointed out that the global defense industry trend is shifting from 'technology acquisition' to 'local production'. Accordingly, Hanwha also plans to expand its global partnerships based on local production and the resilience of the core parts supply chain.
According to the Jane's Defense Budget Report on the 16th, this year's global defense spending is approaching 2.56 trillion dollars. This is an increase of 3.6% from last year's 2.48 trillion dollars. The expansion of defense investment aims to strengthen advanced technology capabilities and ensure defense production flexibility.
CEO Coulter said through Hanwha Newsroom on the 15th, "As geopolitical uncertainties increase and there are difficulties in securing global supply chains, stakeholders are significantly changing their approach to the defense industry," and "especially in Europe, there is a growing demand for 'local production' due to the inability to respond to changes in procurement and production systems."
This signifies a change in the defense trend that previously focused on 'acquiring the highest level of technology'. The perception of purchasing the best technology has shifted to 'securing domestic independent production capabilities'.
In particular, countries around the world are securing local production and core parts supply chains through collaboration with private defense companies. CEO Coulter said, "While government cooperation is important for enhancing stability, the interaction of industrial capabilities and business is key to strengthening global security and industrial competitiveness," and "Hanwha is providing solutions that meet the demands of each government by establishing local production bases in major countries such as the United States, Europe, Australia, Poland, and Romania."
In fact, Hanwha has acquired the Phil Sea Shipyard in the United States to establish a long-term local shipbuilding capability. In Poland, it is positioning itself as a European defense company by co-producing K9 self-propelled howitzers locally and producing guided missiles for the Homar-K multiple launch rocket system with the WB Group. In Romania, it is establishing local production, technology transfer, and maintenance, repair, and overhaul (MRO) facilities for K9 self-propelled howitzers and K10 ammunition supply vehicles. The Redback armored vehicle, developed to reflect Australia's requirements, is a representative 'customized defense' product through local production and technology cooperation.
Hanwha Aerospace, the intermediate holding company of Hanwha's defense division, recently completed a capital increase of 3 trillion won, the largest ever, and plans to invest the funds secured through this in large-scale domestic and foreign facility investments. The 2.9188 trillion won secured through the capital increase will be invested in △ overseas production capacity establishment (1.3 trillion won) △ joint venture establishment (918.8 billion won) △ propellant (MSC) smart factory establishment (600 billion won) △ factory facility operation investment (100 billion won), etc.
CEO Coulter emphasized, "We are strengthening local partnerships to provide integrated and future-oriented systems according to the requests of countries around the world," and "We are establishing ourselves as a reliable partner by supporting long-term industrial cooperation and strengthening national security defense capabilities."
hoya0222@fnnews.com Kim Dong-ho Reporter