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.<\/p>\n
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\u2019s Mobile Tactical Cannon project.<\/p>\n
\u201cWe\u2019ve produced over 3,000 of these vehicles, we have another 600+ in backlog,\u201d Mike said. \u201cIt is the most prolific system on the planet.\u201d<\/p>\n
First major Army contract<\/p>\n
This is Hanwha Defense USA\u2019s first major contract with the U.S. Army, which is looking to produce new and updated defense systems faster.<\/p>\n
\u201cBattles are won through platforms and combat capability, but wars are won by industrial capacity,\u201d Mike said.<\/p>\n
HDUSA will deliver six prototype Mobile Tactical Cannon systems within the first year, with the option for another 12 prototypes.<\/p>\n
\u201cCome along the back and talk about resupply capability as well, so fielded, proven, a clear path to modernization,\u201d Jason said.<\/p>\n
Opelika facility\u2019s role<\/p>\n
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.<\/p>\n
\u201cThis onshoring and localization piece is going to be a phased approach,\u201d Jason said. \u201cOpelika is absolutely phase one of that broader strategy.\u201d<\/p>\n
Opelika will be used for integration and testing before delivering to the Army, working directly on vehicles two through six.<\/p>\n
\u201cThink along the lines of government furnished equipment: radios, antennas, fire control systems,\u201d Todd said. \u201cA lot of the electronic components that go in the gun.\u201d<\/p>\n
Company eyes national growth<\/p>\n
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.<\/p>\n
\u201cNo matter how long this program goes on for 10 years, or 12 years, or 15, that\u2019s going to be a part of our future,\u201d Mike said.<\/p>\n
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.<\/p>\n
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