Hanwha Aerospace Co. is actively negotiating new weapons deals with Germany, the United Kingdom and several other European countries as it seeks to capitalize on a global surge in defense spending driven by ongoing conflicts in Ukraine and the Middle East.
The South Korean defense manufacturer is accelerating production at home while simultaneously expanding its manufacturing footprint across Europe and the United States in an effort to keep pace with rapidly rising demand for munitions, missile systems and other advanced weapons platforms. The company’s global chief strategy officer, Alex Wong, said the imbalance between demand and supply is becoming increasingly severe as militaries worldwide move to rebuild depleted stockpiles and strengthen long-term readiness.
Speaking in an interview on the sidelines of the Shangri-La Dialogue security forum in Singapore on Saturday, Wong said recent conflicts have underscored structural weaknesses in global defense production capacity. He pointed to the wars in Ukraine and the Middle East as catalysts that have reshaped procurement priorities across NATO members and allied states.
“Demand is outstripping supply,” Wong said. “The recent conflicts in recent years whether it’s in Ukraine or the current one in Iran really shows the need and the necessity for militaries around the world to increase productive capacity and stockpiles of munitions.”
Hanwha Aerospace has emerged as one of the key beneficiaries of rising geopolitical tensions, with South Korean defense firms seeing strong international demand for artillery systems, missile defense platforms and ammunition. The company has been particularly boosted by interest in its M-SAM missile systems, developed jointly with LIG Defense & Aerospace Co., as Gulf states and other regional actors look to strengthen air defense capabilities against increasingly sophisticated missile threats.
Europe remains the most important growth market for Hanwha, where governments are accelerating defense modernization programs following commitments by NATO members to significantly increase military spending. Many European countries are prioritizing land-based systems, long-range strike capabilities, artillery platforms and integrated missile defense systems as part of broader efforts to reduce dependence on external suppliers.
To support this expansion, Hanwha has increased its physical presence in the region, including opening a new office in Berlin this year. The company has also secured major contracts in Europe, including a deal worth approximately $877 million with Norway to supply its Chunmoo multiple rocket launcher systems, as well as a significant agreement with Poland for missile-related systems following earlier defense cooperation between the two countries.
Wong said Hanwha is continuing discussions with existing customers such as Poland and Romania, while also exploring new opportunities in markets including Germany and the United Kingdom. These talks extend beyond procurement contracts and include broader discussions about establishing localized production capacity and strengthening long-term industrial cooperation.
“The talks center around procurement of defense systems, and also touch on where can we place new productive capacity and leverage workforce,” Wong said.
He added that modern defense requirements increasingly emphasize layered and integrated systems capable of countering drones, missile attacks and indirect fire simultaneously. According to Wong, this has intensified pressure on manufacturers to deliver systems quickly while ensuring supply chain resilience.
“If you want to defend your people from whether it’s drones, whether it’s missiles or whether it’s incoming indirect fire, you want to have a multi-layered integrated missile defense,” he said. “And you don’t want to wait for it, you want it now and you also want to domesticate that supply chain so you have resiliency and if you need to ramp up production in times of conflict you can do that.”
Hanwha’s strategy reflects a broader shift in the global defense industry away from centralized export-driven production models toward distributed manufacturing networks. This approach is designed to reduce bottlenecks, improve delivery times and strengthen political and industrial partnerships with host countries.
While maintaining what it describes as “hot production lines” in South Korea to ensure core output capacity, the company is aggressively expanding its international manufacturing presence. It already operates a munitions facility in Arkansas in the United States and produces howitzers and armored vehicles in Australia. At the same time, it is building new factories in Poland and Romania aimed at producing a wide range of defense products, from ammunition to missile systems and artillery platforms.
Wong said the company’s expansion strategy is directly tied to surging global demand and the need for faster delivery timelines in a deteriorating security environment.
“We have customers that need more munitions, that need more interceptors. And we’ve been moving production to meet that demand,” he said.
