Hanwha Systems Co., a prominent South Korean defense company, announced on Tuesday that it has secured an $867 million contract to supply its advanced mobile multi-function radar (MFR) systems to Saudi Arabia. This deal is a significant component of a broader 4.27 trillion won ($3.1 billion) contract established in February between a consortium led by LIG Nex1 Co. and Saudi Arabia for the Cheongung II mid-range surface-to-air missile (M-SAM) system.
The MFR systems will be integrated into the Cheongung II missile defense system, enhancing Saudi Arabia’s capabilities to detect, track, and intercept aerial threats. The value of this deal represents 49% of Hanwha Systems’ consolidated sales for 2023, underscoring its importance to the company’s financial performance.
This latest contract follows Hanwha’s previous success in securing a 1.3 trillion won ($940 million) deal to supply the same radar systems to the United Arab Emirates in 2022, marking the first international deployment of the Cheongung system by the LIG-led consortium.
Developed in collaboration with South Korea’s state-run Agency for Defense Development (ADD), Hanwha’s MFR is the core component of the Cheongung II system. This sophisticated radar can simultaneously handle multiple functions, including detection, tracking, electronic warfare, and missile guidance. It features the advanced AESA (active electronically scanned array) technology, capable of tracking multiple air and ground targets over extensive ranges.
Hanwha Systems’ CEO, Eoh Sung-chul, highlighted the company’s commitment to advancing its defense technology portfolio. “We have expanded our export items into future weapons systems using new technologies such as the AESA radar and unmanned marine systems. We will solidify our position as a world defense system leader,” he stated.
The Cheongung II system, an upgrade from the original Cheongung I deployed by the Korean Army in 2015, offers improved maneuverability and “hit-to-kill” capability against ballistic missiles. Each battery of the system includes Hanwha’s MFR, a command post vehicle by Kia, and four launchers with eight vertically launched missiles per launcher. It can intercept targets at ranges up to 40 kilometers and altitudes of up to 15 kilometers.
Hanwha Systems plans to adapt the MFR for the harsh desert conditions of Saudi Arabia, ensuring reliable performance amid high temperatures and sand dust. This contract reinforces Hanwha’s strategic position in the global defense market and its role in bolstering South Korea’s missile defense strategy.
