What's Happening?
Hanwha Aerospace is in discussions with the U.S. Government to localize energetics production through a company-owned and operated model. The company plans to produce 155mm artillery rounds with base bleed units, which extend the range of the shell. This initiative is part of the U.S. Army's shift from insurgency missions to preparing for large-scale combat operations. The Department of Defense is increasing production from 168,000 to 1.2 million rounds per year, qualifying additional suppliers for metal shells and forging capabilities.
Why It's Important?
Hanwha's efforts to localize munitions production in the U.S. address the growing demand for artillery rounds amid shifting military priorities. The initiative supports the Army's readiness for large-scale combat operations and strengthens the defense industrial base. By increasing production capacity, the U.S. can better meet the needs of its military and allies, enhancing strategic capabilities.
What's Next?
Hanwha is considering investing in a Fully Automated Modular Charge Facility in the U.S., with plans to open the first facility in South Korea by 2027. The company may also approach the UK and Europe for similar initiatives. The success of these efforts will depend on ongoing negotiations with the U.S. Government and the ability to meet production targets.
