Hanwha Aerospace plans to establish its first missile manufacturing facility in Germany, marking a strategic pivot that positions the South Korean defense contractor squarely against established European rivals as the continent races to build domestic weapons production capabilities.
The company revealed its investment plans during an industry event in Berlin this week, where it outlined its vision to establish a manufacturing facility in Eastern Germany focused on precision-guided missiles and ammunition. The proposed facility is expected to create high-quality jobs and stimulate the local economy through localized production and integrated supply chains.
The German expansion represents Hanwha’s most aggressive European push yet, following record defense contracts across the continent. The company’s CEO has said European land arms revenue is expected to double by 2027, driven by the continent’s desire to “procure arms within the region” rather than rely on distant suppliers.
Hanwha recently announced plans for a $2.5 billion capital raise to build overseas production facilities in Europe, the Middle East, Australia and the United States. The company wants to use 1.6 trillion won ($1.1 billion) specifically to invest in overseas production bases for ground defense systems.
The timing reflects Europe’s strategic recalibration following Russia’s invasion of Ukraine. Defense spending increases across Europe have created demand for domestic capabilities, according to Hanwha’s global defense chief, who said “As European defense budgets increase, it’s important for us to bring the strength of Korea but also to be European”.
Hanwha already operates significant European contracts, including $9.2 billion in deals with Poland to supply 364 howitzers and 290 missile defense systems since 2022, and a $1 billion order from Romania for howitzers. The company currently partners with more than 60 German suppliers across defense sectors, with annual procurement exceeding €100 million.
Around 100 participants attended the Berlin gathering, including representatives from German defense companies and both federal and local government offices, signaling official support for the South Korean company’s investment plans.
