South Korean defense firm Hanwha Aerospace has unveiled a 100-million-euro ($115.5 million) investment plan to strengthen Estonia’s defense sector, including the construction of a maintenance and repair hub as well as a new ammunition production facility.
The planned sustainment center will provide maintenance and lifecycle support for systems supplied to the Estonian Defence Forces, particularly the K9 Thunder self-propelled howitzers and K239 Chunmoo multiple rocket launcher systems.
As part of the initiative, Hanwha will also help establish a 40-millimeter ammunition plant capable of producing more than 300,000 rounds each year. Around 25 million euros ($28.9 million) from the investment package will be dedicated to the facility, which will be operated in partnership with a local Estonian company.
The wider cooperation plan also includes training programs, technical support for defense equipment, and deeper research and development collaboration with Estonian defense firms.
Hanwha emphasized that the investment goes beyond a simple financial commitment. The company estimates that the economic impact of the initiative and related joint projects could reach approximately 160 million euros ($184.9 million), potentially raising the overall value of the cooperation program to around 260 million euros ($300.5 million).
Estonian Defence Minister Hanno Pevkur noted that the investment is connected to Estonia’s ongoing procurement of the Chunmoo rocket artillery system, underscoring the broader strategic partnership between Tallinn and the South Korean defense industry.
