Dong Kwan Kim, Hanwha Vice Chairman, Heads to Australia This Week [Yang Nakgyu's Defence Club]

Visit to Ground Weapon Production Facility in Geelong and Austal

Leveraging Australian Base for Expansion into U.S. Maritime and Defense Markets

Dong Kwan Kim, Vice Chairman of Hanwha Group, and Jaeil Sohn, CEO of Hanwha Aerospace, have visited Australia. Following the local production of self-propelled artillery, they aim to solidify their presence in the Australian defense market by signing a large-scale contract at Austal, a shipbuilding and defense company acquired by Hanwha.

Infantry Fighting Vehicle Redback Produced in Australia Photo by Yonhap News

According to the industry on March 4, it was stated, "Vice Chairman Kim and CEO Sohn plan to tour Hanwha-related defense facilities in Australia and are visiting to develop strategies for entering the U.S. defense market through the Australian defense sector."

Vice Chairman Kim will first visit Geelong, Australia. On February 26, a rollout ceremony for three AS9 self-propelled artillery pieces was held at the H-ACE (Hanwha Armoured vehicle Centre of Excellence) in Geelong, Australia, marking the beginning of a new phase for local production in the defense industry. The AS9 is a model modified from the K9 self-propelled artillery—holding over 50% global market share—to meet the requirements of the Australian Army. This rollout signifies a shift from simple exports to producing and supplying weapon systems directly on-site overseas.

H-ACE, completed in August 2024, is the first overseas production base established by a South Korean defense company. Covering approximately 150,000 square meters, it is equipped with 11 facilities, including a main building, production halls, a driving test site, and a shooting range. Hanwha Aerospace plans to manufacture 30 AS9 units and 15 AS10 ammunition resupply vehicles here to supply to the Australian Army. The first Australian-made AS10 vehicle is also scheduled for rollout within this year.

The group is also making notable achievements in the shipbuilding and maritime sector. Last month, Austal, an Australian shipbuilding and defense company in which Hanwha Group is the largest shareholder (19.9% stake), secured a contract for special-purpose vessels worth KRW 4 trillion. This is the largest contract ever won by Austal in Australia. With this, Austal has increased its order backlog to KRW 18 trillion, securing work for the next 10 years. Austal operates shipyards in Henderson, Australia, Mobile, Alabama, and San Diego, California, USA. There is an expectation that Austal will become a key base for Hanwha Group's overseas expansion in shipbuilding and defense.

This contract involves the construction of eight large landing craft (LCH) for the Australian government, valued at AUD 4 billion (approximately KRW 4.1045 trillion). Each LCH is 100 meters long, 16 meters wide, with a displacement of about 4,000 tons. It can carry over 200 troops and nine Redback armored vehicles produced by Hanwha Aerospace.

The company is playing a central role in the Australian government's "strategic shipbuilding" initiative. In the United States, Austal is engaged in the construction, maintenance, repair, and overhaul (MRO) of ships for the U.S. Navy and Coast Guard. Austal's revenue is on the rise: in the first half of the current fiscal year (July-December 2025), sales reached AUD 1.1 billion (about KRW 1.1218 trillion), up 33.4% from AUD 825.7 million in the same period last year.

Hanwha Group plans to pursue large-scale projects through Austal, such as next-generation frigate programs and the development of infrastructure to support nuclear-powered submarines in Australia. They are also considering integrating their capabilities in weapons, sensors, and systems integration—possessed by Hanwha Aerospace and Hanwha Systems—with Austal's U.S. bases to expand orders for U.S. military ships.

An industry official commented, "Combining ship platforms (shipbuilding) and on-board systems (armaments and sensors) will create significant synergy," adding, "Going forward, especially with a focus on the AUKUS (U.S., Australia, U.K.) and Five Eyes (U.S., U.K., Canada, Australia, New Zealand) markets, we plan to accelerate our efforts."

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