The group told Janes that its expansion strategies remain unchanged despite Covid-19. The pandemic has inevitably affected some short-term plans – such as pursuing opportunities through attendance at international defence exhibitions – but Hanwha’s longer-term targets remain unaffected.
Hanwha is aiming to expand significantly over the coming few years through programmes such as the Redback IFV (pictured), which is currently bidding to win a major contract in Australia.
A spokesperson from Hanwha told Janes that the group’s four defence affiliates reported total revenues in 2019 of nearly KRW5.2 trillion (USD4.3 billion), up 4% from the year earlier. In 2018 the revenues reported by Hanwha’s defence companies represented a year-on-year increase of 10%.
The spokesperson added, “Hanwha aims to increase the total revenues of [its] defence business more than twice than the current figures by 2030 to become [one] the world’s top 10 defence companies.”
Investment strategy
The group’s expansion goals are supported by a commitment to invest KRW4 trillion in developing Hanwha’s defence and aerospace businesses by 2022.
The investment is supporting various projects across Hanwha’s defence businesses to develop next-generation technologies and products, as well as expansion through acquiring whole or part stakes in overseas businesses.
Hanwha’s four defence businesses comprise Hanwha Systems, Hanwha Defense, Hanwha Aerospace, and the Hanwha Corporation. While the latter is part of the parent Hanwha holding company, the three former firms were acquired by Hanwha from rival South Korean groups Samsung and Doosan in the mid-2010s.
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