Hanwha Aerospace said Thursday that it has started building a production facility in Romania to manufacture self-propelled artillery systems and ammunition resupply vehicles, aiming to establish a European production base and expand its footprint in the region's defense supply chains.
The South Korean defense company said it broke ground on the Hanwha Armored Vehicle Center of Excellence Europe in Petresti, central Romania, Wednesday, to produce K9 self-propelled howitzers and K10 ammunition resupply vehicles.
The facility, which will be the company's first production site in Europe, is expected to strengthen Hanwha's partnership with Romania, support the country's domestic defense manufacturing expansion and contribute to NATO and European security objectives, the company said.
The groundbreaking ceremony was attended by senior Romanian officials, including presidential adviser for national security and foreign policy Marius Lazurca, Vice Prime Minister Barna Tanczos, Economy Minister Irineu Darau, Corneliu Stefan, president of the local Dambovita County Council, and South Korea's Defense Acquisition Program Administration Minister Lee Yong-chul.
"This will be Hanwha Aerospace's first production facility in Europe and will grow into a core production site for European land systems," Son Jae-il, president and CEO of Hanwha Aerospace, said in his welcoming address. "Beyond manufacturing, we are committed to technology transfer and close local cooperation, with the goal of integrating Romania as a key pillar of the global defense supply chain."
The complex will span 181,055 square meters and feature advanced assembly lines, performance and validation testing facilities, a 1,751-meter driving test track and R&D labs.
Once completed, the site will serve as a core hub supporting local production of the K9 and K10, as well as providing full life-cycle services, including assembly, integration, testing and maintenance, repair and overhaul.
The facility follows a 1.4 trillion won ($972 million) deal signed in July 2024 under which Hanwha agreed to supply Romania with 54 self-propelled howitzers and 36 ammunition resupply vehicles. Under the deal, the two sides agreed for Hanwha to set up a production site in the country.
Hanwha plans to expand the facility to broaden the lineup to support additional advanced land systems such as infantry fighting vehicles, long-range precision strike systems and uncrewed ground vehicles, positioning it as a regional hub for ground systems in Europe.
Over time, the company said it will raise localization rates to as much as 80 percent, through working with more than 30 Romanian partners.
Hanwha emphasized that the potential expansion could create up to 2,000 direct and indirect jobs.
sahn@heraldcorp.com
