Hanwha Group has expressed strong interest in investment and business opportunities in the Australian market based on the growing defense partnership between South Korea and Australia.
The move comes on the heels of a major defense contract signed between Hanwha Defense Australia, a defense business affiliate of Hanwha Defense and the Hanwha Group, and the Commonwealth to produce 30 AS9 Huntsman Self-Propelled Howitzers and 15 AS10 Armoured Ammunition Resupply Vehicles in Geelong, Victoria, under the project LAND 8116 phase 1.
Valued USD $785 million, the AS9 deal marked the first time Australia has acquired major defense equipment from an Asian nation, and has the potential to help evolve the Seoul-Canberra relationship to a more comprehensive strategic partnership.
Against that backdrop, Hanwha Group is in discussions to set up a bilateral business channel with the Victorian government to address potential business cooperation and investment opportunities. Tentatively named “Hanwha Forum,” the initiative is expected to begin during the first half of this year.
A number of Hanwha’s subsidiaries are keen to participate in the forum to promote their respective business portfolios and explore mutually beneficial business opportunities.
For the engineering and construction sector, Hanwha is expected to share its experience and know-how of complex development projects and urban development, while Hanwha’s space and satellite business arms can tap opportunities to collaborate on Urban Air Mobility (UAM), as well as satellite internet services.
In the defense sector, Hanwha Defense is interested in cooperating with the Victorian government for the UK Mobile Fires Platform project, aimed at acquiring advanced self-propelled howitzers, by utilizing the armoured vehicles centre of
excellence to be constructed in Geelong, which could serve as a hub for activities in Europe and other parts of the world.
In addition, ammunition plants and guided weapons would be topics for future defense cooperation, while Hanwha’s CCTV camera technology is expected to gain strong attention from the Australian industry. Hanwha Group also has expertise in finance, chemicals, and advanced materials to offer to Australian industrial partners.
“Hanwha and Australia have already forged a relationship based on mutual trust and friendship through defense business projects, and I think both parties have much to gain from further cooperation in other business sectors,” said Richard Cho, managing director of Hanwha Defense Australia. “The opportunities are significant for the Australian economy with the creation of hundreds of jobs and tens of millions of dollars in economic activity possible.”
