Korea Investment & Securities Co. said on the 30th that Hanwha Aerospace's plan to produce ammunition for Cheonmu in Poland is expected to strengthen mid- to long-term competitiveness through recurring revenue and the establishment of a production base in Europe.
Earlier, Hanwha Aerospace said it had signed a third export contract for the Korean multiple rocket launcher "Cheonmu" with Poland. The contract is worth 5.6 trillion won. The deal was carried out through a consortium with a joint venture established by Hanwha Aerospace and Polish defense corporations WB Electronics.
Jang Nam-hyeon, an analyst at Korea Investment & Securities Co., said, "Given Poland's demand for guided missiles as it plans to introduce 288 Cheonmu launchers, Hanwha Aerospace is expected to generate continued revenue," adding, "Even under a conservative assumption of producing only 36 rounds—the load per set of a launcher and ammunition carrier—initial revenue of 520 billion won would be generated."
He added, "If we apply the stockpiling standards targeted by major North Atlantic Treaty Organization (NATO) member states, including Germany, the potential market expands to more than 5 trillion won," and "guided missiles to be delivered from 2030, driven by large-scale replacement demand as service life expires roughly every 10 years, will generate steady cash flow."
Meanwhile, a strong lock-in effect is also expected from establishing a local production system. As dedicated production lines and parts supply chains take root locally, the entry barrier for competing products is expected to rise.
Jang said, "Leveraging the local base, it will also be possible to expand Cheonmu's market share in Europe," adding, "In the bidding competition for potential customers, including Norway and France, in addition to Estonia, which has already decided to introduce the system, the Polish production base will serve as a key advantage."