Hanwha Aerospace of South Korea has announced a 100-million-euro ($115.5 million) investment initiative designed to boost Estonia’s defense manufacturing capabilities, including plans to establish a repair and sustainment center and a new ammunition production facility.
The proposed maintenance hub will service military platforms delivered by the company to the Estonian Defence Forces, notably the K9 Thunder self-propelled artillery systems and the K239 Chunmoo multiple rocket launchers.
In addition, the investment package provides funding for a 40-millimeter ammunition factory with an annual production capacity exceeding 300,000 rounds. Approximately 25 million euros ($28.9 million) will be directed toward building and operating the plant, which will run in collaboration with a domestic Estonian partner.
Beyond infrastructure, the initiative includes training programs, equipment maintenance support, and expanded research and development partnerships with local defense companies.
Hanwha stated that the program is intended to deliver tangible economic benefits rather than being a “dry” investment. The company estimates that joint projects linked to the initiative could generate about 160 million euros ($184.9 million) in economic impact, potentially raising the total value of the cooperation framework to roughly 260 million euros ($300.5 million).
Estonian Defence Minister Hanno Pevkur confirmed that the investment is tied to Estonia’s current acquisition program for the Chunmoo rocket artillery system, highlighting the growing defense cooperation between Estonia and South Korea.
