Hanwha Aerospace is stepping up efforts to localize operations in Europe by establishing a joint venture in Poland, in a move seen as a direct response to the region’s growing push to exclude non-European defense firms under the “Buy European” strategy.
The South Korean defense contractor said on Apr. 15 (local time) that it signed an agreement in Warsaw with Poland’s largest private defense group, WB Group, to form a joint venture. Under the agreement, Hanwha Aerospace will hold a 51% stake, while WB Electronics—a subsidiary of WB Group—will own the remaining 49%.
The new entity will serve as a local production base for guided rockets used in Chunmoo, a self-propelled wheeled multiple launch rocket system (MLRS), focusing initially on 80-kilometer-range munitions for the Polish military. In addition to meeting domestic demand, the venture is expected to become a strategic hub for future exports across Europe.
Hanwha Aerospace previously signed two contracts with Poland’s Armament Agency in 2022 to supply 80-kilometer and 290-kilometer guided rockets, with the deals valued at a combined 7.2 trillion won (approximately $5 billion).
A company official said Hanwha plans to use capital raised through paid-in capital increases to secure additional manufacturing footholds in Europe.
