Estonia invites South Korean defense firm Hanwha to set up local production hub
Estonia has proposed South Korean defense firm Hanwha Defence onshores some of its activities here.
Hanwha is supplying Estonia with its K9 "Thunder" self-propelled howitzers, and a contract for multiple-launch rocket systems has been signed. Some neighboring states are acquiring the same systems.
"I have proposed to the Hanwha corporation that, bearing in mind Estonia has a strong port network and is more or less centrally located if we consider Poland, Finland and Norway, they could also consider establishing one such service-and-spare-parts center here in Estonia," Minister of Defense Hanno Pevkur (Reform) told "Aktuaalne kaamera."
The Center for Defense Investments (RKIK) said that while the issue has indeed been discussed, though some neighboring countries are at a more advanced stage in negotiations with Hanwha, than Estonia is. At the same time, producing components could still make sense here.
"In broad terms, this is life-cycle management and maintenance, and from that point, we have identified certain components that are not produced in neighboring countries and which would make sense to start producing. Plus, there would be interest from neighboring countries as well," said Janari Kasemets, head of the RKIK's combat platforms category.
Plans for a defense industry park near Pärnu are taking shape, and tenant firms producing ammunition are still being sought; South Korean firms are in the picture, including with the purchase of K239 Chunmoo rocket launchers, Kasemets noted. "The company has proposed various options for what could be done with the involvement of industry. That includes ammunition production." This system uses rockets manufactured by Hanwha.
Once it became clear that a sufficient number of U.S.-made M142 HIMARS systems would not be delivered to Estonia rapidly enough, the state signed a defense cooperation agreement with South Korea for the purchase of multiple-launch rocket systems. Poland is doing the same.
Six more K9 Thunder self-propelled howitzers made by Hanwha have arrived in Estonia, to add to the existing fleet and with six more due next year. The total contract is worth €120 million for 36 units.
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Editor: Andrew Whyte, Valner Väino
Source: 'Aktuaalne kaamera'
