Final Selection of STX Engine for K9 Self-Propelled Howitzer Engine Localization

Achieving 100% Domestic Parts Rate through Engine Localization and Expectation of Global Market Expansion

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] Gyeongsangnam-do announced on the 31st that STX Engine, a representative defense company in Gyeongnam, has been finally selected for the 'K9 Self-Propelled Howitzer Engine Localization Project.'

The localization of the K9 self-propelled howitzer engine was announced in February this year as the first task selected through a business agreement signed last May following the Materials, Parts, and Equipment 2.0 strategy.

The Ministry of Trade, Industry and Energy will support a total of 25 billion KRW in engine localization development costs over five years, and the Defense Acquisition Program Administration plans to support the actual use of the successfully developed parts in weapon systems.

The K9 self-propelled howitzer, a representative domestic defense export weapon, is manufactured by Hanwha Defense, but its engine currently uses German-made parts.

The K9 self-propelled howitzer is operated by our military and has already been exported to six countries including Turkey and Australia. If parts localization is achieved, it will capture both domestic demand and export opportunities.

Until now, the engine has been produced through technical cooperation with Germany's MTU, resulting in a localization rate of 60%. It is expected that applying proprietary technology through this project could achieve a 100% localization rate.

With the localization of the K9 self-propelled howitzer engine, including core components, full localization will be completed, and it is expected to generate about 1.2 trillion KRW in production inducement effects by 2030 through overseas market development such as the Middle East and performance upgrades of the K9 howitzers supplied to the Republic of Korea Army.

Furthermore, it is expected to not only maintain employment at about 230 local small and medium-sized partner companies but also create over 5,000 new jobs.

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