South Korean defense industry giant Hanwha Aerospace has announced a major direct investment package of nearly €100 million to support Estonia’s defense industry and technological independence, Delfi reports.
According to the company, the goal is to strengthen Estonia’s technological sovereignty and establish a regional center for territorial defense systems in the country. Including associated economic impacts and joint research and development projects, the total value of the package is projected to reach up to €260 million.
Just before the turn of the year, Estonia signed a contract worth nearly €290 million with Hanwha Aerospace to purchase at least six Chunmoo multiple rocket launchers, along with three different types of rockets. Last year, Hanwha also delivered six new K9 Thunder self-propelled howitzers.
One of the central elements of Hanwha’s investment is a contribution of approximately €25 million toward establishing a 40 mm ammunition production unit in Estonia. The factory is planned to operate in cooperation with a local manufacturer and is expected to have a production capacity of more than 300,000 rounds per year.
In addition to ammunition production, Hanwha Aerospace will invest approximately €23 million in establishing a dedicated competence center in Estonia. The center is designed to provide independent maintenance, repair and overhaul (MRO) capabilities, meaning Estonia will be able to service and repair its Chunmoo and K9 systems and in the future possibly IFVs on location.
Estonian companies that are already working with or will soon sign cooperation agreements with Hanwha Aerospace include Nortal, Sensus Q, Frankenburg Technologies, Marduk Technologies and Milrem.
—