Hanwha Aerospace (012450.KS), the defense arm of Hanwha Group (000880.KS), will export self-propelled howitzers to the United States, the first such deal for a Korean-made weapons system.
Hanwha Aerospace said on the 19th that its U.S. unit, Hanwha Defense USA, signed a contract with the U.S. Army to supply six prototypes of the K9 wheeled self-propelled howitzer, known as the K9MH. Hanwha will first deliver six prototypes, and if the U.S. Army exercises its option, it will supply 12 more for a total of up to 18. The contract for the six prototypes is worth $100.3 million (about 139.8 billion won), while the total project cost, including the additional 12-unit option, reaches $262.9 million (about 366.5 billion won).
The U.S. Army plans to spend up to four years refining the howitzer's performance to match its operational concept. After a customizing phase in which the units are deployed to test performance, reliability and maintainability, the Army will approve fielding if no defects are found and sign a final mass-production contract. Following the main contract, production is estimated at about 500 K9 units, with the project valued at around 10 trillion won.
The K9MH is fitted with an automated turret. Since early this year, the U.S. Army has reviewed multiple global defense firms across delivery timelines, required performance and cost, and Hanwha Aerospace won the sole contract, beating out formidable competitors from defense powerhouses including Britain, Germany and Israel. Hanwha, which has held the top spot in the global self-propelled howitzer market on the strength of its tracked K9, has vaulted into a strong position in the wheeled howitzer market as well with this deal.
