Hanwha Defense, Domestic Orders in First Half Increase Fivefold Despite COVID-19

K9A1 Self-Propelled Howitzer

[Asia Economy Reporter Ki-min Lee] Despite the impact of the novel coronavirus infection (COVID-19), Hanwha Defense achieved domestic business orders worth 1.2 trillion KRW in the first half of this year alone. This amount is more than five times that of the same period last year.

Hanwha Defense announced on the 30th that the order amount in the first half of this year reached 1.2 trillion KRW, which is 370 billion KRW higher than initially expected. Hanwha Defense explained that it is continuing stable order activities by steadily securing new business orders, performance upgrades, and various outsourced maintenance contracts.

In particular, recent order performance has improved remarkably. Hanwha Defense signed an additional production contract worth 380.3 billion KRW for the K56 ammunition carrier armored vehicle yesterday. Prior to this, on the 19th and 22nd of this month, Hanwha Defense signed contracts with the Defense Acquisition Program Administration for outsourced maintenance of the K9A1 self-propelled howitzer performance upgrade (194.3 billion KRW) and the surface-to-air missile system 'Cheonma' outsourced maintenance (238.3 billion KRW), respectively. Subsequently, on the 24th, it also secured the first production contract worth 251.7 billion KRW for the 30mm wheeled anti-aircraft gun replacing the old Vulcan gun.

K56 Ammunition Carrier Armored Vehicle

The order outlook for the second half of this year is also positive. Additional production contracts for the K105A1 self-propelled howitzer and outsourced maintenance contracts for the Marine Corps amphibious assault armored vehicle are scheduled, and development of explosive detection and removal robot systems and production contracts for the 120mm self-propelled mortar are also expected to follow. Additionally, Hanwha Defense is participating in the self-propelled crossing equipment project, for which the preferred negotiation partner will be selected by the end of this year, and is currently preparing for testing and evaluation.

Hanwha Defense expects the order amount in the second half to reach up to 1 trillion KRW, forecasting that the total order amount for this year will nearly double compared to last year.

Although overseas exports and deliveries are somewhat limited due to the impact of COVID-19, Hanwha Defense stated that normal consultations are ongoing with countries interested in exports and purchases. In the case of India, which is scheduled to receive 100 K9 units by November this year, more than 50 units have already been produced and delivered through local defense companies since March, ahead of schedule. Deliveries of K9 units to Norway also began in May.

The 'Redback' next-generation tracked armored vehicle, which was selected as the final candidate for the Australian Army's 'Land 400 Phase 3' project, with the preferred negotiation partner to be selected by the end of 2022, will begin local testing and evaluation from the second half of this year. The 'Biho Complex' air defense weapon system, participating in India's short-range air defense missile procurement project, successfully completed testing and evaluation at the end of 2017, and related negotiations with Indian authorities are ongoing.

Lee Sung-soo, CEO of Hanwha Defense, said, "Although the internal and external conditions are unstable due to the impact of COVID-19, this achievement is very meaningful as it is the result of the tearful efforts of all employees," adding, "We will continue to expand Hanwha Defense's market base by further satisfying the military customers' requirements and continuously expanding co-growth efforts with partner companies."

This content was produced with the assistance of AI translation services.