Hanwha Aerospace said in a regulatory filing Monday that it signed an execution contract with Indra for the export of K9 self-propelled howitzers and related systems.
The company did not disclose the number of systems, contract value or delivery schedule, citing confidentiality obligations.
Under the payment terms disclosed, Hanwha will receive an initial advance payment equivalent to 20 percent of the contract value following the signing, followed by another 5 percent within this year.
While the total value remains undisclosed, the deal is estimated to exceed 667.5 billion won ($486 million), based on Korea Exchange rules requiring companies to disclose contracts exceeding a certain proportion of annual sales.
Spanish defense publication Infodefensa previously reported that an artillery modernization program led by Indra could be worth up to 4.52 billion euros ($5.3 billion).
The deal marks Hanwha Aerospace’s first K9 export to Western Europe, expanding the artillery system’s footprint beyond its established markets in Northern and Eastern Europe.
Indra, one of Spain’s leading defense companies, operates in more than 140 countries and has capabilities in communications, command and control (C2) and situational awareness systems for ground forces. The company also maintains an extensive business network across Latin America.
Hanwha said Spain represents the K9’s 11th export market since the company began exporting the artillery system to Türkiye in 2001. The K9 has since been supplied to countries including Poland, Finland, India, Norway, Estonia, Australia, Egypt and Romania.
The company said the K9’s expansion into Western Europe reflects its proven firepower, mobility and operational and maintenance efficiency, demonstrated through years of service with multiple armed forces.
The Spanish deal comes less than two weeks after Hanwha secured a U.S. Army contract on Aug. 19 to provide six prototypes of a wheeled variant of the K9 under the service’s artillery modernization efforts.
The back-to-back deals highlight the K9 family’s expanding presence in major Western defense markets.
Industry officials expect the K9 to continue broadening its overseas footprint, citing its combat-proven capabilities, competitive pricing, relatively rapid delivery and established logistics and maintenance support.
Global market research firm Spherical Insights has projected that the global howitzer market will grow from $33 billion in 2023 to $78.8 billion by 2033, identifying Hanwha Aerospace as one of the sector’s key manufacturers.
Shares of Hanwha Aerospace fell 4.67 percent to 1.103 million won on Monday.
AJP Takeaways
· Hanwha Aerospace signed a K9 howitzer deal with Spain’s Indra, entering Western Europe for the first time.
· The contract is estimated to exceed 667.5 billion won ($486 million).
· Spain becomes the K9’s 11th export market.
Copyright ⓒ Aju Press All rights reserved.