Hyundai Rotem to acquire Hyundai Wia's defense unit

Hyundai Rotem, a defense affiliate of Hyundai Motor Group, has agreed to acquire the defense business unit of Hyundai Wia for 358.4 billion won (approximately $252 million). The acquisition includes the Special Business Division, which manufactures large-caliber artillery, such as the 120mm main gun for K2 battle tanks and 155mm barrels for K9 self-propelled howitzers.

The move is intended to achieve vertical integration, allowing Hyundai Rotem to produce key components in-house. This strategy aims to reduce costs, improve supply chain management, and enhance the company's ability to offer local production and technology transfers to international buyers. The decision follows significant export activity, including a $6.5 billion contract to supply K2 tanks to Poland and an agreement with Peru.

For Hyundai Wia, the sale is part of a restructuring effort to pivot toward future mobility technologies, such as vehicle electrification, robotics, and software-defined vehicles. Hyundai Rotem confirmed it will retain all transferred employees from the division.