South Korean defense contractor Hanwha Aerospace has announced a 100-million-euro ($115.5 million) investment package aimed at supporting Estonia’s defense industry, including plans to build a sustainment and repair center and establish an ammunition factory.
The maintenance facility will support systems supplied by the company for the Estonian Defence Forces, including the K9 Thunder self-propelled howitzers and K239 Chunmoo multiple rocket launcher systems.
Alongside the repair center, the investment includes funding for a 40-millimeter ammunition plant capable of producing more than 300,000 rounds annually.
About 25 million euros ($28.9 million) of the package will be allocated to the factory, which will be operated with a local partner.
The broader program also covers training initiatives, equipment support, and expanded research and development collaboration with Estonian companies.
Not a ‘Dry’ Investment
According to Hanwha, the economic impact of the investment and related joint projects could reach around 160 million euros ($184.9 million), bringing the potential total value of the cooperation package to roughly 260 million euros ($300.5 million).
Commenting on the effort, Estonian Defense Minister Hanno Pevkur revealed that the investment is tied to Tallinn’s ongoing procurement agreement for the Chunmoo rocket artillery system.
“A condition of this contract was Hanwha’s commitment to invest in the Estonian defense industry,” Pevkur said, adding that negotiations are now moving toward concrete agreements with domestic companies.
He also emphasized that Estonia sought more than simple financial investment.
“We’ve always said that when it comes to technology transfer in the defense industry, we want not just ‘dry’ investments in old technologies, but an influx of new knowledge and skills,” he stated.
“Hanwha has proven itself to be a very reliable partner for Estonia.”
