Hanwha Aerospace plans to invest approximately 3 trillion won to establish an ammunition production base on U.S. Army land.
Hanwha Aerospace’s U.S. subsidiary, Hanwha Defense USA, announced on the 21st (local time) that it held a ceremony to open its local office at Pine Bluff Arsenal (PBA), a U.S. Army facility in Arkansas. This office opening marks the first step in implementing plans to establish an ammunition production base.
Hanwha Aerospace will construct facilities for producing 155mm artillery shell components and propellant charges at this site. The new facilities are expected to establish an integrated manufacturing system that vertically integrates all stages of ammunition production, from raw materials to finished products. The new production facilities are anticipated to contribute to increasing U.S. ammunition production capacity and modernizing the aging ammunition industry infrastructure.
To achieve this, Hanwha Aerospace plans to invest 2.2 billion dollars (approximately 3 trillion won) over the next seven years to establish an ammunition production base and create about 400 jobs. Arkansas closely cooperated with Hanwha throughout the site selection process, conducting site visits across the state over the past 18 months, hosting meetings with Hanwha executives during their visit to Korea, and holding consultations at the Paris and Pambler Air Shows.
Hanwha Aerospace plans to accelerate its U.S. business expansion through this investment. Last month, it signed a contract to supply prototype K9 wheeled self-propelled howitzers (K9MH) for the Mobile Tactical Howitzer (MTC) program with the U.S. Army. In Opelika, Alabama, the company is preparing facilities for prototype assembly, integration, and testing. The plan is to expand its foothold in the U.S. ground defense industry by leveraging two key hubs: the self-propelled howitzer base in Alabama and the ammunition base in Arkansas, while actively contributing to strengthening the ROK-U.S. alliance.
Michael Coulter, CEO of Hanwha Defense USA, stated, “We are fulfilling our commitment to strengthen the U.S. defense industry foundation through investment and job creation based on Hanwha’s manufacturing capabilities.” He added, “In the future, we will further elevate the U.S. ammunition industry’s capabilities while actively contributing to expanding defense cooperation between the two countries.”
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