Hanwha Aerospace CI

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Hanwha Aerospace Co. will carry out the largest rights offering in its history to strengthen its research and development (R&D) hub domestically while expanding local production facilities overseas.

According to regulatory filings on Thursday, Hanwha Aerospace plans to raise approximately 3.6 trillion won ($2.45 billion) by issuing 5,950,500 new common shares at a proposed price of 605,000 won per share.

The company cited the evolving geopolitical landscape, including rising European defense spending, self-reliant defense efforts, and U.S. naval expansion, as key factors behind the decision.

Of the total proceeds, around 1.6 trillion won will be allocated to establishing global local production facilities for land defense systems such as the K-9 self-propelled howitzer and the K-239 Chunmoo multiple rocket launcher.

The company noted that countries in Europe and the Middle East increasingly prefer cooperation models requiring local production investments over direct arms purchases, and it plans to actively respond by securing local manufacturing bases.

Investment in overseas land defense facilities is expected to focus on Eastern European nations.

Following exports of K-9 howitzers and K-239 Chunmoo missile launchers to Poland, Hanwha Aerospace has also signed contracts to supply ground weapons to Romania and Estonia.

Australia is another key investment destination, with the company having completed its Hanwha Armoured vehicle Centre of Excellence (H-ACE) production plant in Geelong last August.

The facility manufactures Australian versions of the K-9 howitzer and the Redback infantry fighting vehicle.

During a conference call on Thursday, Hanwha Aerospace emphasized that H-ACE is the first overseas production base established by a South Korean defense firm and a successful model for local manufacturing. The company aims to expand this strategy to Eastern Europe and the Middle East.

In Korea, Hanwha Aerospace plans to develop its facilities into an R&D hub for next-generation defense technologies.

The facilities will be upgraded into a global R&D hub and “mother factory” overseeing the company’s international production network.

Additionally, the company will establish a smart factory dedicated to producing propelling charges for self-propelled artillery and missile systems, with domestic land defense investments totaling 900 billion won.

Hanwha Aerospace is also set to invest 800 billion won in upgrading and expanding U.S. shipbuilding facilities, aligning with the Trump administration’s focus on U.S.-Korea shipbuilding cooperation.

The company is already executing a multi-yard strategy, integrating shipyards in Geoje in Korea’s South Gyeongsang Province, Philadelphia, and Singapore’s Dyna-Mac shipyard.

Hanwha Aerospace announced on Wednesday it is set to resume efforts to acquire a stake in Australia-based defense company Austal Ltd., which operates shipyards in the U.S. and Australia.

The U.S. naval shipbuilding and maintenance, repair, and overhaul (MRO) market is projected to see sustained growth over the next decade.

Hanwha Aerospace plans to actively expand into this market, particularly in surface and support vessel construction, in line with the U.S. Navy’s fleet expansion policy.

The company will also invest 300 billion won in drone engine development facilities to strengthen mass production capabilities.