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Hanwha to sign term sheet with Poland's WB Group for joint missile venture

Published: 15 Apr. 2025, 21:35

The Chunmoo multiple launch rocket system fires missiles off Yeonpyeong Island in the Yellow Sea on June 26, 2024. [YONHAP]

Hanwha Aerospace said Tuesday it plans to sign an agreement with Polish defense firm WB Group on the basic terms for an envisioned joint missile venture in the European nation.

The two sides plan to sign a term sheet, a nonbinding agreement that will outline the key terms and conditions of the envisioned joint venture, later in the day in Warsaw.

Under the agreement, Hanwha Aerospace will hold a 51 percent stake, while WB Electronics, a subsidiary of WB Group, will hold the remaining 49 percent in the joint venture.

The venture will support local production of the 80-kilometer-range (49.7-mile-range) Chunmoo guided missiles for the Polish military, and the two sides also plan to explore future exports to other European markets. A binding final contract is expected to be signed at a later date.

Since 2022, Hanwha has signed contracts totaling 7.2 trillion won ($5.06 billion) with Poland's armament agency for the supply of Chunmoo missiles.

In September, the two sides signed a memorandum of understanding to produce guided rockets for the Chunmoo multiple launch rocket systems in Europe.

Hanwha Aerospace said it plans to use capital raised from its recently announced rights offering to fund the new venture and strengthen its manufacturing presence across Europe.

The signing ceremony in Poland was scheduled to be attended by Hanwha executives along with Polish Deputy Defense Minister Pawel Bejda, WB Group President Piotr Wojciechowski and Korean Ambassador Lim Hoon-min.

Yonhap