Hanwha invests $299 million to expand U.S. defense market presence

Hanwha is investing up to $299 million (approximately 415 billion KRW) into its U.S. subsidiaries to accelerate its expansion into the American defense market. The capital injection will be distributed between Hanwha Defense USA and the strategic asset investment entity Hanwha Future Proof.

In the land defense sector, Hanwha Defense USA recently secured a $103 million contract with the U.S. Army to develop prototypes for the Mobile Tactical Cannon program, which includes the supply of six K9MH wheeled self-propelled howitzers. This move aims to position the company for a potential mass production contract estimated to be worth 10 trillion KRW. To support this, Hanwha has leased a facility in Opelika, Alabama.

On the maritime front, Hanwha is leveraging its acquisition of Philly Shipyard to target U.S. Navy vessel and merchant ship orders. The company is also pursuing the acquisition of Austal USA, a producer of modules for Navy ships and nuclear-powered submarines, to broaden its maritime capabilities. Additionally, Hanwha is considering building ammunition and propellant production facilities in Arkansas to establish a comprehensive local supply chain.