Hanwha Aerospace Co., a leading South Korean defense company, said on Thursday it has signed a 370 billion won ($254 million) deal to supply K9 self-propelled howitzers to India.
The defense affiliate of Korea’s chemicals-to-defense conglomerate Hanwha Group will deliver the artillery systems to the Indian Ministry of Defense in collaboration with Indian engineering and manufacturing company Larsen & Toubro (L&T).
The deal follows a 770 billion won contract in 2017, under which Hanwha supplied 100 units of the K9 howitzers to the Indian Army through 2020.
The Korean defense firm attributed the latest contract to its strong track record of K9 howitzer sales in international markets.
“With proven performance in Eastern Europe, Hanwha’s K9 self-propelled howitzer is now expanding its footprint in the Asian defense market,” said a company official.
SECOND BATCH
Although Hanwha didn’t reveal the number of the K9 howitzers it supplies to India, sources said last December that India will acquire 100 units of the K9 howitzers from Hanwha’s Indian partner L&T in an $850 million deal.
Sources said L&T will supply to the Indian Army the K9 Vajra-T – a 155 mm, 52-caliber tracked self-propelled artillery platform – adapted from Hanwha’s howitzer K9 Thunder.
The K9 Vajra-T was jointly developed by L&T and Hanwha Aerospace to meet the special requirements of the Indian Army for operations in varied terrain, including deserts, plains and high-altitude regions.
K9 Vajra-T howitzers will be manufactured in cooperation with Hanwha Aerospace at L&T’s plant in Hazira, Gujarat state.
The deal’s value agreed to between the Indian Army and L&T is estimated at 72.69 billion rupees ($850 million), of which about half will likely go to Hanwha Aerospace, given the Korean company’s role in joint production and its technology transfer, sources said.
MORE INDIAN DEALS LIKELY
Hanwha expects additional defense contracts from India as it is in talks over air defense systems, sources said.
India’s defense sector is expanding rapidly, driven by its military modernization efforts across land, sea and air domains.
Industry watchers said the country’s defense market is projected to expand to $25 billion within five years from the current $17 billion.
Analysts said India’s position as a key player in Asia’s defense sector could open up additional opportunities for Hanwha Aerospace across Asia.
Hanwha said the K9 self-propelled howitzer holds a global market share of 50-55%, which is only expected to increase with the latest Indian deal.
Finland, which signed a deal to buy K9 howitzers from Hanwha in 2017, purchased 10 additional units in 2021. Norway, which signed a similar deal in 2017, bought four more Hanwha howitzers in 2022.
“With the K9 howitzer’s superior performance and our proven ability to deliver on time, we are committed to strengthening cooperation with nations across the Asian defense market, extending our reach beyond Europe,” said Hanwha Aerospace Chief Executive Son Jae-il.
By Hyung-Kyu Kim
khk@hankyung.com
In-Soo Nam edited this article.
