The South Korea-based company has expressed interest in ramping up business operations in Australia, buoyed by its recent receipt of the $1 billion LAND 8116 contract.
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Hanwha Group has announced it is considering new business opportunities in the Australian market off the back of the burgeoning defence partnership between South Korea and Australia.
This is reflected by the Commonwealth government’s recent award of the $1 billion LAND 8116 contract to its subsidiary Hanwha Defense Australia, for the delivery of 30 AS9 Huntsman Self-Propelled Howitzers and 15 AS10 Armoured Ammunition Resupply Vehicles to the Australian Army.
The manufacture of the vehicles is set to be supported by a new Hanwha production facility at Avalon Airport in Geelong, Victoria.
Given this enhanced defence partnership, Hanwha Group is in discussions to set up a bilateral business channel with the Victorian government, aimed at addressing potential business co-operation and investment opportunities — dubbed the ‘Hanwha Forum’.
A number of Hanwha subsidiaries are expected to promote their respective offerings as part of the forum, scheduled to commence during the first half of this year.
This could include leveraging Hanwha’s engineering and construction offering to support complex development projects, as well as leveraging Hanwha’s space and satellite business arms to bolster collaboration on Urban Air Mobility (UAM) and satellite internet services.
Meanwhile, Hanwha Defense is considering opportunities to cooperate with the Victorian government for the UK Mobile Fires Platform project by harnessing the new armoured vehicle facility in Geelong.
Hanwha is also mulling potential opportunities across ammunition plants, guided weapons, and CCTV camera technology.
The company can also offer finance, chemicals and advanced materials to Australian industrial partners.
“Hanwha and Australia have already forged a relationship based on mutual trust and friendship through defence business projects, and I think both parties have much to gain from further co-operation in other business sectors,” Richard Cho, managing director of Hanwha Defense Australia, said.
“The opportunities are significant for the Australian economy with the creation of hundreds of jobs and tens of millions of dollars in economic activity possible.”
In addition to the LAND 8116 contract Hanwha Defense Australia is proposing its Redback infantry fighting vehicle (IFV) for the Commonwealth’s $18-$21 billion LAND 400 Phase 3 project to supply the Australian Army with a fleet of up to 450 next-generation vehicles.
Hanwha is competing against Rheinmetall Defence Australia, which has proposed its Lynx IFV.
The Risk Mitigation Activity is now complete, with a selection announcement imminent.