STX Engine has secured an 84 billion won ($61.8 million) contract to supply diesel engines for Australia’s next-generation Redback infantry fighting vehicles, pushing the South Korean defense company further into global markets.
The agreement with Penske Australia, which runs through 2027, includes technology transfer provisions enabling local production capabilities in Australia, the company said Friday.
STX Engine has evolved significantly since entering South Korea’s defense industry in 1977 through a diesel engine overhaul arrangement with Germany’s Rolls-Royce Solutions. The company has built its international reputation by exporting engines for K9 self-propelled howitzers to India, Poland, Norway and Türkiye.
CEO Lee Sang-soo cited the deal as evidence of international trust in the company’s technology. STX Engine described the arrangement as part of its strategic transformation from a technology importer to a specialist in domestic research and development with global export capabilities.
Penske Australia provides mobility solutions across multiple sectors including defense, transportation and energy in Australia and New Zealand.
The contract highlights growing emphasis on local production and technology transfer as competitive advantages in today’s defense market.
