Hanwha Group to invest 2.2 trillion won in Romanian defense sector, accelerating push into Europe

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[Financial News] Hanwha Group has proposed an industrial package worth 1.3 billion euros (about 2.2 trillion won) to help build Romania’s defense ecosystem, speeding up its push into the European market. On top of existing investments and production bases, the group is pursuing a "localization strategy" that combines technology transfer and research and development (R&D) to establish a defense hub in Europe.
According to Hanwha Aerospace on the 2nd, Hanwha Aerospace Romania unveiled a comprehensive industrial package worth a total of 1.3 billion euros in Bucharest on March 31 (local time). The package is designed to simultaneously strengthen Romania’s self-reliant defense capabilities and expand the country’s defense industrial base.
The package is built around two pillars: "direct industrial investment" and "long-term technology and capability investment." Over the next 10 years, it is expected to generate about 14.4 billion euros in economic value and create more than 9,400 direct and indirect jobs. Key products to be manufactured include the K9 Thunder, the K10 ammunition resupply vehicle, and the Redback infantry fighting vehicle.
Direct industrial investment focuses on building production capabilities within Romania. The core goal is to establish a self-sustaining defense industrial base by combining production facilities and infrastructure with technology transfer. The technology and capability investment component is aimed at securing future defense technologies, with a focus on space-based surveillance and reconnaissance systems, early warning capabilities, and artificial intelligence (AI)-based analysis platforms.
Hanwha Group has already secured a bridgehead for entry into Europe based on its defense cooperation with Romania. Using the K9 Thunder acquisition program as a starting point, the company has expanded local production and technology transfer partnerships.
In particular, the groundbreaking of the Hanwha Armoured Vehicle Centre of Excellence Europe (H-ACE Europe) in February marked the full-scale launch of its localization strategy. The facility will serve as an integrated hub for production, integration, testing, and maintenance, and is expected to become a key base for defense cooperation targeting the entire European region.
Through this investment, Hanwha Group plans to secure local production capabilities and technological capacity, expand its participation in Europe’s defense procurement market, and actively pursue exports to neighboring countries and joint development projects in the future. The company also expects that linking its efforts with defense support frameworks such as the European Union (EU)’s Security Action for Europe (SAFE) will enable stable business expansion.
Rino Lim, Head of Hanwha Aerospace Romania, said, "This investment is aimed at simultaneously strengthening Romania’s security, fostering its defense industry, and creating long-term economic value," adding, "We will build sustainable industrial capabilities that cover everything from production and maintenance to exports, and establish ourselves as a long-term partner in the European market."
hoya0222@fnnews.com Kim Dong-ho Reporter