OPELIKA, Ala. (WTVM) – Hanwha Defense USA, a Korean-based company with a facility in Opelika, is now contracted by the United States Army through a deal worth up to $262 million.
The company is focusing on its K9 mobile howitzers, combat trucks equipped with self-propelled artillery systems. The contract will use those vehicles to help progress the Army’s Mobile Tactical Cannon project.
“We’ve produced over 3,000 of these vehicles, we have another 600+ in backlog,” Mike said. “It is the most prolific system on the planet.”
First major Army contract
This is Hanwha Defense USA’s first major contract with the U.S. Army, which is looking to produce new and updated defense systems faster.
“Battles are won through platforms and combat capability, but wars are won by industrial capacity,” Mike said.
HDUSA will deliver six prototype Mobile Tactical Cannon systems within the first year, with the option for another 12 prototypes.
“Come along the back and talk about resupply capability as well, so fielded, proven, a clear path to modernization,” Jason said.
Opelika facility’s role
The company took out a three-year lease and made a $2 million investment in the Opelika facility in April. The facility will be fully operational in early fall.
“This onshoring and localization piece is going to be a phased approach,” Jason said. “Opelika is absolutely phase one of that broader strategy.”
Opelika will be used for integration and testing before delivering to the Army, working directly on vehicles two through six.
“Think along the lines of government furnished equipment: radios, antennas, fire control systems,” Todd said. “A lot of the electronic components that go in the gun.”
Company eyes national growth
Hanwha Defense USA is looking at multiple other locations for reproduction as it grows its national presence, but Opelika will continue to be a key location.
“No matter how long this program goes on for 10 years, or 12 years, or 15, that’s going to be a part of our future,” Mike said.
Hanwha Defense USA is also in the process of completing its engineering and program management center in Huntsville, which will work closely with the integration sector in Opelika.
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