Geelong Hanwha site will also serve company’s global contracts

HANWHA’s yet-to-be built Geelong manufacturing centre will also help the Korean defence giant fulfil contracts in other parts of the world.

Hanwha Defense Corporation chief executive officer Jaeil Son welcomed the company’s new $1bn defence contract to build self-propelled howitzers and armoured ammunition resupply vehicles for the Australian Army.

Prime Minister Scott Morrison signed the contract with President Moon Jae-in of the Republic of Korea on Monday.

“Both countries have much to gain from each other economically, but benefits are especially significant in terms of regional security,” Mr Son said.

“The longstanding trust and friendship between Australia and the Republic of Korea is a great asset.”

Managing director of Hanwha Defense Australia Richard Cho said the Hanwha team was now “focused on the seamless delivery of what will be a transformative capability for the Australian Army”.

“We will be working closely with our Australian industry partners to ensure that we deliver on our promise to establish sovereign capability here in Australia,” Mr Cho said.

The procurement is part of

Defence project Land 8116 Phase 1, which will see the acquisition of 30 AS9 Huntsman self-propelled howitzers and 15 AS10 armoured ammunition resupply vehicles.

Hanwha has committed to basing its facility in Geelong, but the site remains unknown.

The company is still in the running to secure the tender for the Land 400 Phase 3 program, which involves the manufacture of 450 infantry fighting vehicles. The tender is expected to be awarded early next year and Hanwha will base those operations in Geelong if it is successful.

Mr Cho said the facility would become a “critical and important secondary line of supply” back to South Korea.

“The Australian operation will also help Hanwha fulfil contracts in other parts of the world and deliver capacity to engage with Five Eyes nations,” Mr Cho said.

Deakin University vice chancellor Professor Iain Martin welcomed the news. The university signed a Memorandum of Understanding with Hanwha earlier this year.

“Deakin and Hanwha have mutual interests in emerging technologies and advanced manufacturing, and a focus on growing the local economy through education and employment opportunities.”