Hanwha Aerospace is set to invest $2.2 billion to establish a large-scale ammunition production base in the United States. The company plans to build production facilities on U.S. Army land to enhance local ammunition production capabilities and accelerate its entry into the U.S. ground defense market.
On September 21, Hanwha Defense USA, the American subsidiary of Hanwha Aerospace, held an office opening ceremony at the Pine Bluff Arsenal, a U.S. Army base in Arkansas.
Hanwha Defense USA was selected as the leasing contractor for the Pine Bluff Arsenal site by the U.S. Army in January. The opening of this office marks the first step in executing plans to establish an ammunition production base.
Hanwha Aerospace will construct facilities for producing components and propellant for 155mm artillery shells at this site. The new facility will feature an integrated manufacturing system that vertically integrates the entire ammunition production process, from raw materials to finished products. This new production capability is expected to enhance U.S. ammunition production capacity and modernize the aging ammunition industry.
To achieve this, Hanwha Aerospace plans to invest $2.2 billion over the next seven years to develop the ammunition production base, creating approximately 400 jobs.
With this investment, Hanwha Aerospace aims to accelerate its expansion in the U.S. market.
Last month, the company signed a contract with the U.S. Army to supply prototypes of the K9 self-propelled howitzer (K9MH) for the Mobile Tactical Howitzer (MTC) project and is establishing facilities in Opelika, Alabama, for prototype assembly, integration, and testing. By developing both the self-propelled howitzer base in Alabama and the ammunition base in Arkansas, Hanwha Aerospace seeks to strengthen its position in the U.S. ground defense market while actively contributing to the solidification of the South Korea-U.S. alliance.
Michael Coulter, CEO of Hanwha Defense USA, stated, "We are committed to strengthening the U.S. defense industry through investment and job creation based on Hanwha's manufacturing capabilities. We will also actively contribute to enhancing the capabilities of the U.S. ammunition industry and expanding defense cooperation between our two countries."
* This article has been translated by AI.
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