Hanwha Aerospace merges with Hanwha Munitions

Hanwha Group Vice Chairman Kim Dong-kwan, fourth from right, poses for a photo in Jung District, central Seoul, on Monday. [HANWHA AEROSPACE]

Hanwha Aerospace is merging with related companies in an effort to become a global powerhouse on par with Lockheed Martin.

At a meeting held Monday in the Hanwha building in central Seoul, Hanwha Aerospace said it completed the merger with Hanwha Munitions Saturday.

It set a goal of 40 trillion won ($30.4 billion) in revenue and 5 trillion won in operating profit by 2030, and said it will "step up as a ‘global top-notch’ company that responds to worldwide geopolitical challenges and climate change as a leading aerospace and defense corporation in Korea.”

“We have the responsibility to protect Korea and the free world and the duty to provide future generations with a sustainable future,” Hanwha Group Vice Chairman Kim Dong-kwan said in the meeting.

Before the merger with Hanwha Munitions, founded in 1952, the engine-specialized Hanwha Aerospace began revamping its defense business in July last year by acquiring Hanwha Defense, specializing in artillery, armed vehicles and air defense. It also acquired a defense division of Hanwha Corporation.

Hanwha Aerospace hopes to capitalize on the synergy effect from the recent mergers to expand the defense industry business, grow its space business and enter the green environment market.

It will log “a revenue of 40 trillion won and an operating profit of 5 trillion won by 2030,” said Hanwha Aerospace CEO Son Jae-il.

The Kospi-listed aircraft engine manufacturer will expand unmanned and automated weapon systems; expand space business involving launch systems and satellite services through cooperation with subsidiaries Hanwha Systems and Satrec Initiative; and push for developing green energy and eco-friendly vessel components.

Kim urged Hanwha employees to not be complacent with the status quo and called on for a combined effort to make Hanwha Group “irreplaceable” for Korea’s economy and security.

BY SOHN DONG-JOO [sohn.dongjoo@joongang.co.kr]