Defense Deal
Hyundai Rotem has completed preparations for main contract negotiations for the Polish K2 tank (K2PL). It has also decided to promote production of the K2 tank in Poland.
Hyundai Rotem announced on April 3 that it signed a consortium (K2PL Consortium) implementation agreement on a K2 tank production and supply project with PGZ, a Polish state-run defense industry group, and WZM under PGZ on March 31 (local time).
The consortium implementation agreement was inked in July of last year based on a general contract between Hyundai Rotem and a Polish military hardware procurement agency. The agreement includes Hyundai Rotem’s support for K2PL tank production by Poland, role clarification for local production and timely deliveries and provisions for cooperation.
The consortium plans to continue internal consultations with the goal of signing an implementation contract with the Polish military hardware procurement agency in the first half of this year. Analysts forecast that the consortium will focus on reviewing and coordinating all details for local production of K2PL tanks such as local technical support, training, and production facility construction.
The Korean government said that it actively played its roles as a bridge to the conclusion of the consortium implementation agreement. Defense Minister Lee Jong-seop personally attended the consortium basic agreement signing ceremony held in Warsaw, Poland in February before the conclusion of the consortium implementation agreement.
Since the export of K2 tanks was confirmed for the first time in August last year, Hyundai Rotem completed the delivery of 10 units as the first batch in four months. Even after that, it met local expectations with stable shipments by delivering K2 tanks three months ahead of schedule.
In particular, the K2 tank recently suffered a defeat in competition to land a tank order from Norway. But in the bidding process, including a test conducted in the field, the Norwegian Defense Material Agency (NDMA) evaluated that the K2 tank was superior to the new German Leopard tank in terms of price and performance. The Korean tank received excellent reviews in terms of production efficiency as well. However, the K2 tank was not chosen due to the political interests of both Norway and Germany. On the day the implementation agreement was signed, a live-fire drill of K2 tanks took place in Poland for the first time in the presence of key government officials, including Polish President Andrzej Duda. The K2 tanks proved their excellent performance by hitting targets 2.7 km away.
The Polish military decided to buy a total of 1,000 Hyundai Rotem K2 tanks in the second project. They will be produced either in Korea or in Poland. Of the 1,000 units, 180 will be the Korean model and 820 units the Polish model. It is said that the K2PL, a Polish type, will be equipped with a remotely controlled machine weapon station (RCWS) and anti-tank rocket and missile systems. Of the 820 units of the K2PL model, 320 units will be produced in Korea and 500 units in Poland.