Hanwha commits €1.3 billion to build Romania defence hub

Hanwha Aerospace has announced a €1.3 billion investment programme to expand defence production capabilities in Romania, marking a significant step in its European growth strategy and a shift toward long-term industrial integration.

The initiative will be carried out through Hanwha Aerospace Romania and is designed to move beyond traditional arms procurement. According to the company, the programme prioritises localisation, technology transfer and the development of domestic industrial capacity aligned with Romania’s defence needs.

Hanwha estimates the investment will generate €14.4 billion in economic value over the next decade and support more than 9,400 direct and indirect jobs.

At the core of the programme is the local production of key defence systems, including K9 self-propelled howitzers, K10 ammunition resupply vehicles and potentially Redback infantry fighting vehicles. The company plans to build multiple production and development hubs across Romania, covering manufacturing, testing and the development of unmanned systems.

Additional projects include a “Made in Romania” drone initiative and the creation of an unmanned ground vehicle industrial hub. Hanwha also aims to localise the production of mid- and long-range missile systems through joint ventures and technology transfer agreements.

The investment extends into long-term research and development. Focus areas include intelligence, surveillance and reconnaissance systems, early warning technologies, AI-enabled satellite capabilities and next-generation land combat platforms.

The company confirmed it has secured foreign direct investment approval from Romanian authorities, with the projects also meeting eligibility criteria under the European Union’s Security Action for Europe funding programme.

Construction is already under way on a Romanian production facility that will manufacture K9 howitzers and K10 resupply vehicles. The move follows a $1 billion contract signed in 2024 between Hanwha and Romania for the delivery of 54 K9 systems and 36 K10 vehicles, forming a key pillar of the broader investment strategy.

The first batch of equipment is expected to arrive in the second half of 2026 for testing and evaluation, with final delivery scheduled for early 2027. Subsequent production will be localised at the Hanwha Armoured Vehicle Centre of Excellence Europe in Dâmbovița County, supporting the development of sustained domestic defence manufacturing capabilities.

Founded in 1977, Hanwha Aerospace operates across aerospace, land systems and unmanned technologies, and said the investment underscores its commitment to expanding its footprint in Europe and strengthening long-term defence partnerships.

By Tamilla Hasanova