The facility, named the Hanwha Armoured Vehicle Centre of Excellence (H-ACE), is the first overseas production base created by a Korean defense company.
Located in Geelong, Victoria, the plant is scheduled to begin mass production of Australian versions of Hanwha's K9 Self-Propelled Howitzer and K10 Ammunition Resupply Vehicle in the second half of 2024.
Hanwha Aerospace plans to deliver 30 self-propelled howitzers and 15 ammunition resupply vehicles to the Australian Army by 2027.
The Redback Infantry Fighting Vehicles are also slated to enter mass production after prototype deliveries in the first half of 2026. A contract for 129 units was signed last year.
The dedication ceremony for H-ACE took place on Friday, with both Korean and Australian government officials in attendance.
The Australian production base is expected to facilitate Hanwha Aerospace's entry into defense markets associated with AUKUS (Australia-U.K.-U.S. Security Pact) and the Five Eyes (U.S.-U.K.-Canada-Australia-New Zealand) intelligence alliance, as demand for defense products rises in the Indo-Pacific region due to geopolitical tensions.
"This facility represents Hanwha's commitment to Geelong, Victoria, and Australia, demonstrating that the company is focused on the future of programs in this region, including howitzers, vehicles, and other technological advancements beyond our current initiatives," said Hanwha Aerospace CEO Son Jae-il.
The H-ACE facility spans about 150,000 square meters and includes 11 structures, such as production buildings, assembly areas, driving test tracks and shooting ranges.
Located in Geelong, about an hour's drive from Melbourne and 10 minutes from Avalon Airport, the site offers logistical benefits and ease of workforce recruitment.
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