Hanwha Aerospace signed a term sheet agreement with Poland’s WB Group to establish a joint venture for missile production in Warsaw, marking a significant expansion of South Korean defense technology into Europe. The South Korean company will hold a 51% stake in the venture, with WB Electronics, a subsidiary of WB Group, owning the remaining 49%.
The partnership will manufacture the Cheonmu guided missile (CGR-080), which has an 80-kilometer range, primarily for Poland’s military while targeting broader European exports. The venture will begin operations after receiving approval from Poland’s Antimonopoly Committee.
Hanwha has been supplying both 80-kilometer range missiles and 290-kilometer range guided missiles to Poland since 2022, with contracts valued at 7.2 trillion won ($49.5 billion). The agreement represents a deepening of defense cooperation as Poland works to develop domestic production capacity in response to Russia’s invasion of Ukraine.
“The joint venture will contribute to the growth of Polish industrial capability, as well as to the modernization of the Polish Armed Forces,” said Billy Boo-hwan Lee, head of Hanwha Aerospace’s PGM Business Group.
The move aligns with WB Group’s goal of producing Poland’s first long-range precision missile within three years, according to the company’s statement. For Hanwha, the venture represents a strategic expansion of its European presence amid growing demand for defense systems from NATO and EU countries concerned about regional security.
The agreement builds upon previous cooperation between the countries, including Poland’s 2022 procurement of 288 K239 Chunmoo launchers, known locally as HOMAR-K artillery systems.
