With its K9 Thunder 155 mm self-propelled howitzer (SPH), Hanwha Aerospace has already carved out a significant market in Europe, with Estonia, Finland, Norway, Poland and Romania having already selected the system.
Now, the South Korean manufacturer has set its sights on Romania’s current infantry fighting vehicle (IFV) requirement, offering the K21 IFV that, as well as being in South Korean service, has also been selected by the Australian Army, where the vehicle will be known as the AS21 Redback.
ESD recently interviewed Peter J K Bae, head of Hanwha Aerospace Romania, which was established in October 2024 to support in-country production of the K9 and its associated K10 ammunition resupply vehicle.
“The establishment of the Romanian subsidiary is our key commitment to strengthening footprints in this country, contributing to the security and economy of Romania. It is also in compliance with an offset agreement signed with the Romanian government for the contract on K9 and K10 artillery systems,” Bae explained.
“Through the setup of Hanwha Aerospace Romania, we will implement the agreed deal as planned more smoothly, and we hope to have opportunities for more business contracts here, with strong commitment to localisation programmes meeting the needs of the Romanian government and armed forces,” Bae added.
Hanwha Aerospace Romania has already found some qualified local companies to work on the programme, but is continuing the process to add more local qualified suppliers and subcontractors.
“The K9 local production facility aims to start construction in the first half of 2025,” said Bae. “It will be the first local production facility in Europe built by Hanwha Aerospace. The facility will be a state-of-the-art one capable of equipment testing, research, training, and MRO [maintenance, repair and overhaul] in addition to production.”
Bae additionally noted that Hanwha Aerospace Romania will have the capacity to produce Redback IFVs should the IFV contract in Romania, or indeed elsewhere in Europe, be secured.
Asked what benefits Hanwha can deliver to Romania through the local manufacturing of K9 SPHs and potentially Redback IFVs, Bae stated, “Romania is seeking to strengthen its self-reliant defence capabilities, and to this end it’s very important to produce, supply and maintain defence equipment in a timely manner. In this respect, the Hanwa Centre of Excellence is expected to contribute to bolstering Romania’s independent defence and deterrence to a greater extent.
“In addition,” said Bae, “based on active co-operation and partnerships with local defence companies, relevant technology transfer will be carried out, which will lead to the development and modernisation of the Romanian defence industry.”
Promoting the qualities of Hanwha’s IFV bid in Romania, Bae asserted, “We can say the Redback is the most modernised infantry fighting armoured vehicle, featuring the technology and performance the Romanian military needs. The Redback has already proven its superior performance compared to its competitors in the Australian Land 400 Phase 3 project.”
Among the Redback’s capabilities are enhanced comfort for the crew through the use of rubber tracks and an independent suspension; high levels of protection, inside and out, to match a range of battle scenarios; and an active protection system to counter direct anti-armour threats.
“By selecting the Reback, the Romanian defence market will be revitalised through the latest IFV local production and technology transfer,” Bae said. “The high level of commonality between K9 and Redback over their chassis and powertrain systems is a key factor to bring benefits to the industry.”
Australia’s selection of the Redback in July 2023, after which a contract followed in December 2023, is certainly a strong argument for its adoption in Romania. The Redback underwent a rigorous, year-long field test by the Australian Defence Force to finally win out over IFVs based on the BAE Systems Hägglunds CV90, General Dynamics Land Systems Ajax and Rheinmetall Lynx KF41.
Addressing the Romanian IFV requirement has significant implications for Hanwha’s global expansion strategy.
“Hanwha is playing an active role in strengthening NATO’s defence capabilities and protecting its security,” said Bae. “Romania is a key player in NATO’s eastern flank, along with Poland, and Hanwha will contribute to strengthening NATO’s deterrence capabilities by providing proven weapon systems, services and on-site production.
“In addition, by increasing localisation as much as possible, local SMEs are to be included in Hanwha’s global supply chain to establish an industry structure that can grow together.”
Romanian adoption of the Redback would certainly contribute toward Hanwha’s rapid growth and success in global defence markets. In this regard, Bae noted that Hanwha has already been recognised for its reliable and proven defence equipment, most notably with regard to the K9 SPH.
“We provide products and services suitable for the needs of partner nations through timely delivery and localisation strategies,” he said. “European/NATO countries especially recognise Hanwha’s capability and capacity, which is boosting Hanwha’s presence in the European defence market.”
Noting that the current conflict in Ukraine is spurring NATO countries to expand their defence capabilities, especially land systems, Bae asserted, “To this end, Hanwha Aerospace Romania will establish a more co-operative partnership with Romania as a trusted partner of NATO to strengthen defence and deterrence against the NATO eastern flank.”
Asked to identify why Hanwha has been able to make such strides in terms of its rapid growth and penetration of the European market, Bae referred back to the situation faced in his home market.
“It is related to our geopolitical and geographical situation in Korea,” he said, referring to the continual face-off with the regime of North Korea. Comparing that with the conflict in Ukraine and wider military-geopolitical tensions in Europe, Bae noted, “This kind of military tension is everyday life [in South Korea] for the previous 72 years. It means we have to maintain our production capacity, especially for military spending to a certain level, to make our people live comfortably, to make our economy grow steeply under that kind of severe [military environment].”
Unlike in Europe, where the defence industry has suddenly had to wake up a more imminent threat from Russian belligerence – and to achieve a level of capacity that he said could take a decade – Bae noted that, for Hanwha in South Korea, “We can make our product at an affordable price, we can deliver our product pretty quickly, and we can develop our systems according to the developing security situation. I think with those three factors, we can do even something more in the market from now on.”
