Poland ammunition buildup tests S. Korea’s defense localization strategy

Aug. 25 (Asia Today) — Poland’s drive to increase production of 155 mm artillery shells to as many as 180,000 rounds annually is creating a new test for South Korean defense companies seeking to expand in one of Europe’s most important arms markets.

The shift means South Korean companies can no longer rely solely on exporting finished weapons and will increasingly need to compete through local manufacturing, technology partnerships and participation in European supply chains.

Hanwha Aerospace is discussing plans to begin by producing modular charge systems, a key component of 155 mm ammunition, in Poland and later expand cooperation into related materials, testing and certification.

Poongsan, which had previously considered local ammunition production in Poland, is no longer pursuing such a project, the company said.

According to Mesko, a subsidiary of Poland’s state-owned defense group PGZ, Poland plans to establish annual production capacity of between 150,000 and 180,000 155 mm artillery shells beginning in 2028.

One production facility using existing technology would manufacture as many as 100,000 shells annually.

A second factory would produce as many as 80,000 rounds of newer ammunition for systems including South Korea’s K9 self-propelled howitzer and Poland’s KRAB and KRAB-2.

Poland is simultaneously working with European technology suppliers.

PGZ selected Britain’s BAE Systems as a technology supplier for artillery shells and France’s Eurenco to supply modular charge technology.

Mesko and Eurenco are also moving forward with plans to establish a joint venture.

An automated production line for 155 mm shell bodies is scheduled for final acceptance in September 2027 and modular charge production is planned to begin by July 2028.

The developments are forcing South Korean defense companies to reconsider their strategy in Poland as the country transforms from a major weapons importer into a defense manufacturing hub capable of producing weapons and ammunition domestically.

Hanwha Aerospace is seeking to enter Poland’s local supply chain primarily through modular charges and testing and certification technologies rather than relying only on exports of complete ammunition.

“We are currently discussing local production of modular charge systems in Poland,” a Hanwha Aerospace official said.

“We are also continuing discussions with local partners on expanding the scope of cooperation.”

Lee Boo-hwan, head of Hanwha Aerospace’s precision-guided munitions business, proposed modular charge production as the first step in localization during an interview with a Polish media outlet in May.

He also outlined possible future cooperation in propellant components, energetic materials, testing and certification and ammunition life-cycle management.

Hanwha signed a memorandum of understanding with Poland’s Military Institute of Armament Technology last September covering ammunition and propellant design, testing and quality certification.

A possible local manufacturing plant has also been discussed.

The local government in Barcin said last year that Hanwha had presented a proposal to invest about 500 million euros and employ about 300 people at an artillery ammunition plant.

Potential sites and infrastructure requirements involving electricity, natural gas and water were discussed.

Barcin, however, has not been confirmed as the final location and no construction schedule or production volume has been finalized in a binding contract.

Based on information publicly available so far, the project remains at the stage of evaluating possible locations and commercial conditions.

Poongsan, meanwhile, said it is not currently pursuing local production in Poland.

“We are not currently exporting 155 mm artillery shells to Poland and we are not reviewing local production there,” a company official said.

Poongsan signed a memorandum of understanding with PGZ on ammunition production cooperation at a Polish defense exhibition in 2023 and later discussed possible cooperation involving extended-range 155 mm shells.

The company said those talks remained at the memorandum and market-discussion stage and did not develop into an export contract, factory project or joint venture.

Industry officials say Poland’s ammunition expansion creates an opportunity for South Korean defense companies but also increases competition.

Poland’s large-scale operation of the K9 does not automatically guarantee additional purchases of South Korean ammunition or local production roles for South Korean companies.

Poland has already selected BAE Systems and Eurenco as important technology partners as it builds its own ammunition ecosystem.

If Poland develops into a major European ammunition production hub, South Korean companies are likely to compete directly with European defense manufacturers not only in finished weapons but also in technology cooperation and local supply chains.

“Major European countries have been actively strengthening their own defense industrial capabilities since the war in Ukraine,” Cho Hyun-ki, secretary-general of the Korea Defense Industry Association, said.

“Poland’s expansion of 155 mm artillery shell production can be viewed as part of Europe’s broader movement to strengthen a NATO-centered weapons production ecosystem,” Cho said.

“For K-defense, the challenge will increasingly be to diversify beyond exports of finished products into local production, technology cooperation and supply-chain participation.”

— Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260825010008463