Hyundai Rotem shares surged more than 8% for a second straight session after the company said it signed a cooperation agreement tied to local production of K2 tanks in Poland.
As of 9:43 a.m., Hyundai Rotem was trading at 265,500 won, up 21,000 won (8.59%) from the previous session, according to the Korea Exchange. The stock rose 5.84% a day earlier.
Hyundai Rotem said Tuesday it signed a local production and maintenance cooperation agreement with Bumar-Labedy, a defense company under Poland’s state-run defense group PGZ, covering the Polish-version K2 tank (K2PL) and an armored recovery vehicle.
The company said the agreement sets out specific execution measures for a core project under the second implementation contract for Poland’s K2 tanks signed in August last year, and is expected to support efforts to expand defense orders in Europe by building a local production base.
With major European countries increasingly seeking local production in defense procurement, Hyundai Rotem plans to use Poland as a production hub for K2 tanks to pursue additional orders. The company said local production of related equipment, including a combat engineering vehicle and an armored bridge-layer, will be discussed in stages.
Lee Jaekwang, an analyst at LS Securities, said he expects the stock to rise on increased new defense-export orders rather than further gains in profitability. He said the company appears to be aiming to boost K2 exports by using production hubs in Europe-Poland, Latin America-Peru and the Middle East-Iraq.
* This article has been translated by AI.
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