Hanwha Aerospace (012450.KS) is accelerating the expansion of its defense business across Europe by broadening its production and cooperation bases. The company plans to step up its push into the European defense market based on a diversification strategy that includes building a local production system meeting European regulations and establishing joint ventures (JVs).
The key shift is moving away from exporting finished products from Korea toward a system of directly producing and procuring weapons within Europe.
As the “Buy European” stance has recently strengthened in Europe, demand has grown for cooperation models that include local production and technology transfer rather than simple exports.
In response, Hanwha Aerospace plans to pursue the establishment of production bases centered on Poland and Romania, while simultaneously expanding its cooperation network with European defense firms. The company is shifting its strategy beyond simply supplying finished products to a model combining production, technology, and operation.
Notably, plans are underway to build a production base, “H-ACE Europe,” in Romania and to establish a joint venture in Poland to create a local production system for the guided missiles of the Chunmoo multiple launch rocket system. Through this, the company aims to directly secure production and supply chains within Europe and deeply enter the industrial ecosystem.
“We are moving away from exporting weapons produced domestically and pursuing thorough localization through local production, joint ventures, and recruitment of local personnel,” a Hanwha Aerospace official said. “We are carrying out a strategic transition to enter the inside of the European defense supply chain.”
Alongside this, the company is pursuing an investment plan totaling 11 trillion won to expand its presence in the European defense market. Of this, 6.3 trillion won is set to be allocated to securing European production bases and establishing a joint venture plant in the Middle East.
During Eurosatory 2026, Europe’s largest defense exhibition recently held in Paris, France, Hanwha Group operated a joint exhibition hall for Hanwha Aerospace and Hanwha Systems, emphasizing cases of cooperative production within Europe and interoperability with North Atlantic Treaty Organization (NATO) standard equipment.
At the exhibition, the company unveiled the K9A2 self-propelled howitzer equipped with an automatic reloading system, as well as the actual Chunmoo multiple launch rocket system, which is in operation in Poland and whose adoption is being pursued by Norway and Estonia. It also showcased the long-range surface-to-air missile (L-SAM), the medium-range surface-to-air missile (M-SAM) launcher, and the low-altitude missile defense (LAMD) system to target the European air defense market.
