Hanwha Defense USA will deliver K9MH prototypes for the Army’s artillery modernization program under a $233 million agreement.
Hanwha Aerospace is moving to establish a U.S. production base for its K9 artillery system in Alabama, taking steps to localize manufacturing ahead of a major U.S. Army self-propelled artillery project.
Hanwha Defense USA, the company’s U.S. subsidiary, is the sole supplier of prototypes for the Army’s howitzer modernization program. It will deliver six K9MH units, a wheeled version of the K9 howitzer, with an option for a further 12. The award is worth up to $233 million, according to a JP Morgan report published on Wednesday.
The Army had been developing a replacement for its aging howitzers itself under the Extended Range Cannon Artillery program, according to a Hanwha Aerospace spokesperson, who said the M777 towed howitzers in service are 30 to 40 years old.
“They judged that the cost and the delivery schedule were impossible to achieve domestically, and dropped it,” the spokesperson said. “After that, they solicited proposals for wheeled self-propelled howitzers from global manufacturers, including us.”
The prototypes now enter a series of operational experiments. A mass production contract is planned for 2027, with initial fielding in 2030, according to JP Morgan. The K9MH would replace both the towed M777 and the tracked M109A7. Korean media have estimated eventual production at up to 500 units, or about 10 trillion won, roughly $7.1 billion.
Hanwha Defense USA (Hdusa) signed a three-year lease on an idle plant in Opelika on April 30, months before the contract was decided. The building was previously used for automobile production and is not operating, the Hanwha official said, adding that manufacturing there has not been settled.
Foreign companies are generally expected to manufacture inside the United States to win American defense contracts. Asked why Hanwha prevailed, the official cited performance, the company’s preparations to produce locally and its record on delivery schedules.
The howitzer work follows Hanwha’s ammunition operations in Arkansas, where it has been weighing an investment of about $1.3 billion, and the establishment late last year of a U.S. ammunition entity, Hdusa Ordnance Solutions.
BY KIM MIN-YOUNG [kim.minyoung5@joongang.co.kr]
