It's Not Just About Selling K9s... Hanwha Speeds Up Efforts to Build a U.S. Defense Ecosystem

[Financial News] Hanwha is shifting the focus of its strategy for entering the U.S. defense market from exporting finished products to local production and supply-chain development. Alongside efforts to enter a U.S. Army program with the K9 self-propelled howitzer, the company is securing local production and testing facilities as well as an ammunition production base. Its strategy is to become part of the U.S. defense industrial base rather than simply sell weapons.
Hanwha announced on the 9th through its global newsroom that it was simultaneously strengthening its local production capabilities, supply chain and follow-on support capacity as part of its strategy to enter the U.S. defense market.
A leading example is the U.S. Army's next-generation self-propelled artillery program, the Mobile Tactical Cannon (MTC) program. Based on the K9 family of platforms, Hanwha secured a contract to supply six prototypes and 12 optional units, establishing a foothold in the U.S. market. The U.S. Army's existing acquisition plans have indicated the possibility of procuring up to 500 MTC units in the future, drawing attention to whether the project will advance to the main program. With more than 2,500 K9s already deployed worldwide, Hanwha plans to leverage the system's operational track record to pursue the U.S. market.
Hanwha is also accelerating efforts to establish a local production base. In Opelika, Alabama, the company is setting up an integration, testing and follow-on support facility capable of handling future production expansion, maintenance and upgrades. The facility will be responsible not only for increasing production but also for training local personnel and providing long-term maintenance and support. The goal is to create a structure in which K9s are produced, tested and maintained locally, rather than merely exported to the United States.
Localization is also progressing in the ammunition sector. Hanwha is building a local ammunition production base centered on Pine Bluff Arsenal in Arkansas. If artillery systems, ammunition, propellant charges, and maintenance and upgrades are integrated into a single supply chain, expectations are growing that the company could secure recurring long-term revenue in the United States.
This is viewed as an extension of the localization model Hanwha has pursued in Poland and Romania. In particular, as the United States places importance on strengthening its domestic defense industrial base and stabilizing supply chains, industry observers say that securing local production capabilities could be a factor determining the outcome of future major contract bids.
An industry official said, "The U.S. defense market is not one that can be entered simply by presenting good weapons." The official added, "How much capability a company has built up in local production, supply chains and follow-on support will determine its competitiveness going forward."
[email protected] Jeong Won-il Reporter