South Korea’s Hanwha Aerospace (012450) has broken ground on a plant in Poland that will produce guided missiles for the Chunmoo multiple launch rocket system, securing a bridgehead for its push into the European defense market. It is the first time the company has built a guided missile production base outside South Korea, a signal that its roughly 5.6 trillion won (approximately $4.2 billion) Polish supply contract and its European localization strategy are moving into full swing.

Hanwha Aerospace said on the 5th that it held a groundbreaking ceremony the previous day (local time) in Głogów Wielkopolski, Poland, for the guided missile production plant of HWBAS (Hanwha WB Advanced Systems), a joint venture it established with local defense company WB Group. About 250 people from both governments and the defense industry attended, including Polish Deputy Defense Minister Magdalena Sobkowiak-Czarnecka, Robert Frommholz, deputy head of the Polish Armaments Agency, Chung Jae-joon, head of the Force Support Systems Bureau at South Korea’s Defense Acquisition Program Administration, Tae Jun-yul, South Korea’s ambassador to Poland, Lee Boo-hwan, CEO of Hanwha Aerospace, and Piotr Wojciechowski, chairman of WB Group.

The plant will sit on a site of about 1.16 million square meters and is targeted for completion in 2028. It will produce the CGR-080, an 80-kilometer-range guided missile mounted on the Homar-K (HOMAR-K), the Polish version of the Chunmoo. According to the Głogów city government, more than 60 buildings will be erected on the site.

After construction, the project will move through production facility setup, technology transfer, and testing and certification, with initial production beginning in late 2029 and mass production starting in 2030. The project follows a CGR-080 supply contract worth about 14 billion zloty (~5.6 trillion won) that a Hanwha Aerospace and HWBAS consortium signed with the Polish Armaments Agency in December of last year. According to Polish state news agency PAP, the supply volume is 10,000 missiles, with deliveries running from 2030 to 2033.

Hanwha Aerospace and WB Group signed an agreement in September of last year to establish HWBAS, with Hanwha Aerospace holding 51% and WB Group subsidiary WB Electronics holding 49%. Hanwha Aerospace plans to sign a technology license agreement with HWBAS and transfer its guided missile production technology and know-how.

CategoryDetailsProductCGR-080 (80-kilometer-range guided missile)Launch systemHomar-K (Polish version of Chunmoo)Site sizeAbout 1.16 million square meters (more than 60 buildings)Completion target2028Initial productionLate 2029Mass production start2030Supply contract valueAbout 14 billion zloty (~5.6 trillion won)Supply volume and period10,000 missiles, 2030–2033Joint venture stakesHanwha Aerospace 51%, WB Electronics 49%

Note: Supply volume and delivery period are based on reporting by Polish state news agency PAP.

The plant’s construction and operation are expected to create more than 200 new jobs. Deputy Minister Sobkowiak-Czarnecka predicted at the ceremony that more than 250 new jobs would be created. Hanwha Aerospace plans to expand local procurement of parts and materials and build a supply chain centered on Polish partner companies, contributing to revitalizing the local economy and strengthening the defense industry ecosystem.

The groundbreaking dovetails with Poland’s heightened appreciation, in the wake of the war in Ukraine, of the importance of precision-guided rocket artillery and a stable ammunition supply chain. Poland has already adopted the Chunmoo launch system, and through this plant it will build an ammunition supply chain within its own borders as well, with the aim of reducing its reliance on foreign supply chains.

Hanwha Aerospace supplies the Chunmoo to four European countries: Poland, Norway, Estonia, and Croatia. With a local production base now secured in Poland, the possibility of additional European orders is also being raised. The company intends to expand its production range to guided missiles of various ranges depending on Polish military demand and to develop Poland into its European hub for guided missile production and supply.

“Poland is a key strategic partner with whom we have built trust through exports of the K9 self-propelled howitzer and the Chunmoo multiple launch rocket system,” CEO Lee Boo-hwan said. “We will further expand industrial cooperation with Poland and, on that basis, create sustained growth momentum in the European defense market.” Chun Jin-chul, head of HWBAS, said, “This groundbreaking is an important first step in converting South Korea’s advanced guided missile technology into Poland’s own production capability.” He added, “We will systematically expand the local production base by establishing local production processes and training specialized personnel, and raise the level of South Korea-Poland defense cooperation and localization another notch.”

Hanwha Aerospace posted consolidated revenue of 6.0943 trillion won (approximately $4.5 billion) and operating profit of 452 billion won (approximately $336.6 million) in the third quarter of this year. Cumulative revenue for the first three quarters rose 15.6% from a year earlier to 21.1382 trillion won (approximately $15.7 billion), while operating profit climbed 10.1% to 2.4564 trillion won (approximately $1.8 billion).