Hanwha, WB Group sign term sheet for guided missile JV

Hanwha Aerospace has signed a term sheet agreement to establish a joint venture with Poland’s largest private defence company, WB Group, with the aim of manufacturing guided missiles in Poland for the Homar-K Multiple Rocket Launch System. The agreement marks a key milestone in Hanwha’s localisation strategy, reinforcing its long-term commitment to Poland’s defence modernisation and industrial development. It also underlines Hanwha’s growing role as a strategic partner for NATO and EU member states. Under the agreement, Hanwha Aerospace will hold a 51% majority stake in the new entity, with WB Electronics (a WB Group subsidiary) holding the remaining 49%. The joint venture will commence operations following approval from Poland’s Antimonopoly Committee. “With this term sheet agreement, we have just taken the most important step toward establishing our joint venture with WB Group. We believe the joint venture will contribute to the growth of Polish industrial capability, as well as to the modernisation of the Polish Armed Forces. Thanks to this endeavour, our industries will also gain the opportunity to jointly enter new European markets with competitive, combat-proven missile technologies,” said Billy Boo-hwan Lee, Head of Hanwha Aerospace PGM Business Group. “The term sheet shows a clear roadmap for building a missile production site in Poland. The cooperation between WB Electronics and Hanwha Aerospace is a demonstration of how the Polish and Korean industries can work together and how each company complements the other. The factory will increase Poland’s independence in ammunition production and provide huge potential for industrial and economic growth. We expect the plant to become a supply centre not only for the Polish armed forces but also for the armies of other European countries. I want to point out that it will be a Polish company operating by Polish law and paying taxes in the country. The joint venture will employ Polish engineers and workers and will create a supply chain in Poland and the broader European market,” said Piotr Wojciechowski, Chairman of WB Group. The joint venture will be responsible for fulfilling the requirements for producing 80km-range CGR-80 guided missiles for the Homar-K, a Polish version of the K239 Chunmoo MRLS, under another executive contract for the Homar-K. It is also focused on jointly marketing the guided missiles to neighbouring countries in Europe. Hanwha Aerospace has signed two executive contracts since 2022 on the supply of 290 Chunmoo rocket artillery systems that can fire both 80km- and 290km-range guided rockets. The Homar-K programme is referred to as one of the most successful examples for Hanwha’s localisation efforts in Poland, with extensive involvement from the Polish defence industry. Under the Homar-K programme, Polish defence companies oversee the integration and assembly of the long-range rocket launcher system, mounted on Polish Jelcz 8×8 chassis. The Homar-K also features the Topaz combat management system, developed by WB, and other Polish components and subsystems. “The latest JV agreement with WB Group is a significant milestone for Hanwha’s continued expansion in the global defence market,” said Michael Coulter, President and CEO of Hanwha Global Defense. “It represents Hanwha’s strong commitment to delivering the technological edge as well as sovereign, domestic capacity to our global customers.” For Editorial Inquiries Contact: Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Group Sales Director Simon Hadfield at [email protected]