Hanwha Defense's Redback armored vehicle is seen in this file photo. Courtesy of Hanwha Defense

Hanwha Defense CEO Son Jae-il

By Park Jae-hyuk

Hanwha Defense appears to be going all out to win a 22-trillion-won ($18 billion) contract to supply infantry fighting vehicles to Australia, where it is set to build its factory to produce the K9 Thunder self-propelled howitzer, according to industry officials, Tuesday.

Once its officials visit Australia to attend the groundbreaking ceremony for the K9 factory, Hanwha Defense is expected to accelerate its efforts to convince the Australian government to choose its Redback armored vehicle over Lynx of Germany's Rheinmetall for the LAND 400 Phase 3 infantry fighting vehicle project.

Last Sunday, Korean lawmakers and Mayor Huh Sung-moo of Changwon, South Gyeongsang Province, where Hanwha Defense's factories are located, visited the K9 factory site in the Australian city of Geelong, Victoria, and toured the company's hangar, displaying Hanwha's self-propelled howitzer and its armored vehicle, which was named after the Australian redback spider.

Their visit was made after Hanwha Defense selected the site location in February.

During President Moon Jae-in's visit to Australia last December, Hanwha Defense signed a contract to set up a facility for producing its self-propelled howitzers and ammunition resupply vehicles collectively worth 1 trillion won.

Late last month, one of the three Redbacks that finished testing in Australia was also brought back to Korea for the Army's 11th Maneuver Division to operate the armored vehicle on a trial basis over the next two months.

According to sources, the Redback is said to have overwhelmed the Lynx in testing between February and October last year, prompting sections of the Australian army to support Hanwha Defense.

The Australian government is scheduled to choose the preferred bidder in June, but some local news outlets reported that the selection will be finished before the country's federal election in May.

Hanwha Defense said it is considering enabling the K9 factory to produce the Redback, depending on the outcome of its competition with Rheinmetall.

If the Korean firm wins the bid, it will also suggest the export of made-in-Australia Redbacks to the European market.

For these plans, Hanwha Group will organize a consultative group called Hanwha Forum during the first half of this year to have talks with the Victoria State Government about business cooperation and investment plans regarding the construction, space and financial sectors, as well as defense technologies.

"As we started building a production facility in Australia and have made efforts to contribute to the Australian economy, we are hoping for a good result," a Hanwha Defense official said.

According to the company, its new factory is expected to create over 300 new jobs in the region, as it has already signed contracts with over 50 local suppliers to use their components.