Hanwha to sign initial agreement with Poland's WB Group for joint missile venture
Chunmoo multiple rocket launcher / Courtesy of Hanwha Aerospace
Hanwha Aerospace said Tuesday it plans to sign an agreement with Polish defense firm WB Group on the basic terms for an envisioned joint missile venture in the European nation.
The two sides plan to sign what is known as a term sheet, a non-binding agreement that will outline the key terms and conditions of the envisioned joint venture, later in the day in Warsaw.
Under the agreement, Hanwha Aerospace will hold a 51 percent stake, while WB Electronics, a subsidiary of WB Group, will hold the remaining 49 percent in the joint venture.
The venture will support local production of the 80-kilometer-range Chunmoo guided missiles for the Polish military, and the two sides also plan to explore future exports to other European markets. A binding final contract is expected to be signed at a later date.
Hanwha previously signed contracts totaling 7.2 trillion won ($5.06 billion) with Poland's armament agency since 2022 for the supply of Chunmoo missiles.
In September, the two sides signed a memorandum of understanding (MOU) to produce guided rockets for the Chunmoo multiple launch rocket systems in Europe.
Hanwha Aerospace said it plans to use capital raised from its recent rights offering to fund the new venture and strengthen its manufacturing presence across Europe.
The signing ceremony in Poland was scheduled to be attended by Hanwha officials, Polish Deputy Defense Minister Pawel Bejda, WB Group President Piotr Wojciechowski and Korean Ambassador Lim Hoon-min.