Hanwha Aerospace said it is discussing new weapons export contracts with European countries including Germany and the United Kingdom, buoyed by a global trend of increased military expenditure.
According to Bloomberg News on the 30th (local time), Alex Wong, Hanwha Group's global chief strategy officer (CSO), said this in an interview with Bloomberg TV during the 23rd Shangri-La Dialogue in Singapore.
Wong said Hanwha Aerospace is ramping up production in Korea to meet surging demand and is also expanding its manufacturing footprint in Europe and the United States. "Demand is outpacing supply," Wong said, adding, "Several wars in recent years have shown that militaries around the world need to increase production capacity and ammunition stockpiles."
In particular, Wong said Hanwha Aerospace is in talks not only with existing customers Poland and Romania but also with potential customers such as Germany and the United Kingdom. He said, "The discussions include not only procurement of defense systems but also where to locate new production capacity and how to leverage local workforces."
He added, "To protect the public, a layered and integrated missile defense system is necessary," and "because this cannot be put off indefinitely, they want to secure it now, localize their supply chains to build resilience, and be able to ramp up production sharply in times of conflict."
Bloomberg assessed that Europe is emerging as a key growth market for Hanwha. In fact, most North Atlantic Treaty Organization (NATO) member states, after pledging to raise defense spending to around 5% of gross domestic product (GDP), are reviewing the adoption of ground weapons systems, long-range strike capabilities, artillery power, and advanced missile defense systems.
Hanwha Aerospace signed a missile contract with Poland last year and, in February, signed a contract with Norway to supply Chunmoo multiple launch rocket systems worth 1.3 trillion won.