Hanwha Aerospace plans €1.3 billion investment to expand defence production and technology transfer in Romania

By Martin Chomsky (Defence Industry Europe)

South Korean defence company Hanwha Aerospace offers unmatched localization and industrial impact, providing up to 80% Romanian production compared with Rheinmetall’s Hungary-anchored model. It also brings technology transfer that would allow Romania to become an EU land-systems hub, covering development, production, and testing. Hanwha can deliver the full IFV fleet by 2030, making it the only contender able to meet Romania’s urgent timeline amid Europe’s security crisis. Its capabilities are proven, as the Redback outperformed the Lynx in Australia’s high-profile IFV competition.
K9A1 self-propelled howitzer. Photo: Hanwha Aerospace.

Hanwha Aerospace has announced a €1.3 billion investment package to expand defence production capabilities in Romania. The initiative will be implemented through its Romanian subsidiary and focuses on long-term industrial development.

 

The company said the programme is designed to go beyond traditional procurement. “The initiative moves beyond a transactional procurement model, focusing on long-term localisation and technology transfer to support Romania’s national defence priorities and industrial development,” Hanwha Aerospace Romania said.

The investment is expected to generate €14.4 billion in total economic value over the next decade. It is also projected to support more than 9,400 direct and indirect jobs.

The programme centres on local production of key defence systems. These include K9 self-propelled howitzers, K10 ammunition resupply vehicles and potentially Redback infantry fighting vehicles.

 

 

Hanwha said the investment will prioritise building domestic industrial capacity. This includes infrastructure, manufacturing facilities and embedded technology transfer.

The company plans to establish several production and development hubs in Romania. These include facilities for K9 and Redback vehicle production and testing, as well as unmanned systems development.

Additional initiatives include a “Made in Romania” drone programme and an unmanned ground vehicle industrial hub. The company also plans to localise mid- and long-range missile production through joint ventures and technology transfer.

Hanwha said it will also invest in long-term research and development. Areas of focus include intelligence, surveillance and reconnaissance systems, early warning technologies, AI-enabled satellite capabilities and next-generation land combat systems.

The company confirmed it has received foreign direct investment approval from Romanian authorities. Its projects also meet eligibility requirements under the European Union’s Security Action for Europe funding programme.

 

 

Construction has already begun on a production facility in Romania. The plant will manufacture K9 howitzers and K10 resupply vehicles.

Hanwha Aerospace signed a $1 billion agreement with Romania in 2024 for the delivery of 54 K9 systems and 36 K10 vehicles. The contract forms part of the broader investment strategy.

The first tranche of equipment is expected to arrive in the second half of 2026 for testing and evaluation. Final delivery of the initial batch is scheduled for early 2027.

Subsequent production will take place locally at the Hanwha Armoured Vehicle Centre of Excellence Europe in Dambovita county. The company said this will support long-term industrial capability within Romania.

Founded in 1977, Hanwha Aerospace operates across aerospace, land systems and unmanned technologies. The company said the investment reflects its strategy to expand its presence in Europe and strengthen defence partnerships.

 

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