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Hyundai Rotem Co. and Hanhwa Defense have signed a deal with Poland’s defense unit for the supply of battle tanks and self-propelled howitzers. The South Korean manufacturer of defense products and equipment may produce more items and expand their supply contracts further.
According to The Korea Economic Daily, the deal that was signed by Hyundai Rotem and Hanwha Defense with Poland is worth $5.8 billion. The country’s Defense Acquisition Program Administration revealed late last week that the Korean firms inked their first implementation contracts to deliver the following: a K2 Black Panther, K9 self-propelled howitzer, and a next-generation main battle tank.
The defense items are set to be brought directly to the Polish military authority at a mechanized unit in the country. It was reported that the DAPA has not yet revealed the main details and exact value of the deals, but the South Korean defense industry made a guess that Hyundai may have gotten an order of 180 units of its K2 Black Panther worth $3.4 billion while Hanwha may have secured a $2.4 billion deal for 212 units of the K9 howitzers.
At any rate, the signing was said to be a formality to the earlier agreement where Hyundai Rotem and Hanhwa Defense won export deals with Poland last month worth a total of around KRW20 trillion or about $15 billion. At that time, Poland agreed to purchase 980 units of the K2 battle tanks, 48 units of the FA-50 combat aircraft, and 648 units of the K9 howitzers.
The Korean firms are reportedly planning to gradually sign more contracts for more defense supplies. Many believe that Poland will be signing a formal contract for the import of the FA-50 aircraft this year. “We expect to implement contracts for the FA-50 to be smoothly signed by September,” Eom Donhwan, DAPA Minister, said in a statement.
Finally, the contract that was inked in Poland last week is part of the biggest deal that South Korea has ever had in the arms trade. The agreement was originally clinched last month as Poland has been seeking to boost its military amid the Russian invasion of Ukraine, which is a neighboring country, Reuters reported.
"As defense exports are extremely important in terms of sharing weapon systems, mutual logistics support and strengthening security alliances, this export deal is expected to contribute to our efforts to build solidarity with European countries and expand the boundaries of our security capabilities," the DAPA added.
