Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Hanwha Aerospace selected to build prototypes for US Army mobile artillery program
Hanwha Aerospace's wheeled self-propelled howitzer system / Courtesy of Hanwha Aerospace
By Nam Hyun-woo
Hanwha Aerospace has been selected to develop prototypes for a U.S. Army program to introduce wheeled self-propelled artillery systems, paving the way for a potential contract worth up to 10 trillion won ($7.1 billion), the company said Wednesday.
The deal marks the first time a Korean defense company has secured a U.S. military program involving a complete weapons system, a significant milestone for Korea's defense industry as it seeks to expand exports to the world's largest defense market.
According to Hanwha Aerospace, its U.S. subsidiary, Hanwha Defense USA, has signed an agreement with the U.S. Army to supply six prototype systems for the Mobile Tactical Cannon (MTC) program, with an option for 12 additional systems.
The Army awarded the firm-fixed-price agreement through a competitive process under its Other Transaction Authority, a procurement mechanism designed to accelerate the development and acquisition of innovative defense capabilities. The agreement has a total cumulative value of $262.9 million, including $100.3 million for the initial award.
The Army plans to conduct rapid prototyping, testing and soldier experimentation over an estimated four-year period. Soldiers will evaluate the systems' performance, reliability and supportability under realistic combat conditions.
The data gathered during the testing will inform the Army's decisions on future fielding. If approved for fielding, the MTC will replace M777 towed artillery systems in select formations, enhancing their mobility, reliability, survivability and lethality.
The MTC program is part of the Army's efforts to modernize its long-range fires capabilities and develop more mobile and adaptable artillery units for large-scale combat operations.
Hanwha faced competition from major global defense companies, including Germany's Rheinmetall, Britain's BAE Systems and Italy's Leonardo DRS.
Hanwha proposed the K9MH, a wheeled system based on its K9 self-propelled howitzer that combines a wheeled platform with a fully automated turret.
The company's localization strategy is believed to have played a key role in the competition. In April, Hanwha Defense USA leased an idle plant in Opelika, Alabama, for three years and began investing about $2 million to establish an integration and testing facility for the K9MH.
The K9's proven performance in overseas markets is also expected to have strengthened Hanwha's bid. The K9 self-propelled howitzer has been exported to 10 countries, including Poland, Norway, Turkey and Vietnam, and holds the largest share of the global self-propelled howitzer market.
The K9 is known for its ability to rapidly reposition after firing, as well as its high mobility and survivability.
The agreement is significant because it marks the first time a Korean defense company has won a U.S. military program involving a complete weapons system, opening the door to the world's largest defense market.
The deal could also give Hanwha a stronger foothold in other NATO member states, as winning a U.S. Army program would demonstrate its ability to meet the operational and procurement standards of the U.S. military.
Hanwha Ocean, another defense affiliate of Hanwha Group, lost out to Germany's TKMS last month in Canada's next-generation submarine program, which is estimated to be worth 60 trillion won. At the time, Germany's status as a fellow NATO member was cited as one factor that favored TKMS.
The latest U.S. Army deal could strengthen Hanwha's position in NATO defense markets and accelerate its expansion into the alliance's member states.