Hanwha Aerospace has commenced construction of a new production facility in Romania, marking a significant step in establishing a European manufacturing base. The facility will focus on producing self-propelled artillery systems and ammunition resupply vehicles, strengthening Hanwha’s presence in the European defense supply chain.
The South Korean defense company announced the groundbreaking of the Hanwha Armored Vehicle Center of Excellence Europe (H-ACE Europe) in Petresti, central Romania, on Wednesday. The primary products of this facility will be the K9 self-propelled howitzers and K10 ammunition resupply vehicles.
This facility, Hanwha’s first production site in Europe, is strategically positioned to enhance the company’s partnership with Romania, bolster the nation’s domestic defense manufacturing capabilities, and contribute to overall NATO and European security initiatives.
The groundbreaking ceremony saw participation from high-ranking Romanian officials, including Marius Lazurca, presidential adviser for national security and foreign policy; Vice Prime Minister Barna Tanczos; Economy Minister Irineu Darau; Corneliu Stefan, president of the Dambovita County Council; and Lee Yong-chul, South Korea’s Defense Acquisition Program Administration Minister.
“This facility represents Hanwha Aerospace’s inaugural production hub in Europe and is poised to become a pivotal production site for European land systems,” stated Son Jae-il, president and CEO of Hanwha Aerospace, in his welcoming address. “Our commitment extends beyond manufacturing to encompass technology transfer and strong local collaboration, with the objective of integrating Romania as a crucial element within the global defense supply chain.”
The expansive complex, covering 181,055 square meters, will feature state-of-the-art assembly lines, performance and validation testing areas, a 1,751-meter driving test track, and dedicated R&D laboratories.
Upon completion, the H-ACE Europe plant will serve as a central node supporting the local production of the K9 and K10 systems, offering comprehensive life-cycle services including assembly, integration, testing, and maintenance, repair, and overhaul (MRO).
This investment follows a significant 1.4 trillion won ($972 million) agreement signed in July 2024, wherein Hanwha agreed to supply Romania with 54 K9 self-propelled howitzers and 36 K10 ammunition resupply vehicles. A key component of this agreement was Hanwha’s commitment to establish a local production facility in Romania.
Looking ahead, Hanwha plans to expand the facility’s capabilities to encompass a wider range of advanced land systems, including infantry fighting vehicles, long-range precision strike systems, and unmanned ground vehicles, thereby solidifying its position as a leading regional hub for ground systems in Europe.
The company intends to progressively increase localization rates to as high as 80 percent by collaborating with over 30 Romanian partner companies.
Hanwha highlighted the potential for the expanded facility to generate up to 2,000 direct and indirect employment opportunities.
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