Wins Landmark Contract
Hanwha Aerospace has achieved the remarkable feat of supplying 129 Redback armored vehicles to the Australian Army.
Hanwha Aerospace announced on July 27 that its Redback armored vehicle has been selected as the preferred model of Infantry Fighting Vehicle (IFV) in the “Land 400 Phase 3 Project,” which is part of the Australian Army’s modernization program.
The project by the Australian Army aims to replace the American M113 armored vehicles introduced in the 1960s. Once the final contract is signed, Hanwha Aerospace will supply 129 Redbacks from the second half of 2027. The contract value will be finalized during negotiations, and is known to include a comprehensive after-service contract for the armored vehicles worth about 24 billion Australian dollars (US$16 billion). The total contract value, including post-service, is expected to be around 60 billion Australian dollars.
The victory of Hanwha Aerospace in the bidding war, which initially leaned towards Germany, is largely attributed to the company’s meticulous export strategy. The company established its Australian subsidiary in January 2019, before the official announcement of the project by the Australian government. Two months later, they promptly submitted a project proposal to the Australian government. The Redback is a new model designed and developed to meet the performance requirements of the Australian Army.
The commitment to build a factory in Geelong, as outlined in the project proposal, is also seen as a winning factor. Geelong is both the hometown and constituency of Richard Marles, the Minister of Defense. In Australia, members of parliament also hold ministerial posts.
After acquiring a stake in Samsung Techwin in June 2015 and changing its name to Hanwha Techwin (currently Hanwha Vision), the Hanwha Group has strengthened its defense sector. In 2017, the company changed its name to Hanwha Aerospace and in November of last year, it absorbed Hanwha Defense. Then in April this year it merged with Hanwha Corporation Defense Division. Through these integrations, it expanded its business areas from existing aviation engines and space businesses to firepower, mobility, air defense, unmanned systems (Hanwha Defense), ammunition, guided weapons (Hanwha Corporation Defense Division), and became a comprehensive defense company. The Hanwha Group also acquired Daewoo Shipbuilding & Marine Engineering, expanding its business to include warships.
The successful contract in Australia is seen as proof of Hanwha Aerospace’s technological capabilities to meet the requirements of various countries. As a result, there are analyses that the likelihood of winning orders in countries such as Romania and Poland is high. The Romanian government plans to purchase 298 armored vehicles, and it is known that Poland is also considering the introduction of the Redback.