Hanwha Aerospace, BAE Systems ink $130M artillery propellant deal

Hanwha Aerospace has secured a $130 million deal to supply propellant for NATO-standard ammunition to BAE Systems.

From left: Kemi Badenoch, Britain's secretary of state for business; Glynn Plant, managing director of maritime and land for BAE Systems; Son Jae-il, CEO of Hanwha Aerospace; and Korean Industry Minister Bang Moon-kyu pose for a photo at Mansion House in London. [HANWHA AEROSPACE]

Hanwha Aerospace signed a $130-million modular charge system (MCS) supply deal with U.K.’s BAE Systems, the Korean arms supplier’s first export contract to supply NATO-standard artillery propellant for 155-millimeter ammunition.

An MCS is a cylinder-shaped propellant that helps dispatch warheads to a target.

Hanwha began developing MCSs in 2019 amid escalating geopolitical tension in Europe. Development was completed earlier this year.

If Britain decides to acquire Korea's K9 howitzers for its self-propelled artillery project, a package of K9s and MCSs can be exported, according to Hanwha Aerospace.

“Our order for the supply of modular charge systems demonstrates the compatibility of the Hanwha Aerospace MCS system with our 155 millimeter ammunition,” said Glynn Plant, managing director at BAE Systems.

“With our first MCS export for NATO members, we will improve our cooperation with British defense companies in various areas to expand Korea's arms exports and contribute to the security of the free world,” Son Jae-il, Hanwha Aerospace CEO, said.

Hanwha said it has also signed a memorandum of understanding with Babcock International Group to expand bilateral cooperation in global projects encompassing land, water and air.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]