South Korean defense company Hanwha Aerospace has unveiled a 100-million-euro investment plan aimed at strengthening Estonia’s defense industry through new infrastructure, manufacturing, and cooperation initiatives. The package includes the construction of a maintenance and repair facility that will support equipment supplied by Hanwha to the Estonian Defence Forces. These systems include the K9 Thunder self-propelled howitzer and the K239 Chunmoo multiple-rocket launcher. The proposed sustainment center will ensure long-term operational readiness by providing maintenance, overhaul, and technical support services locally. Alongside the maintenance hub, the investment plan also includes the establishment of a 40-millimeter ammunition production facility capable of manufacturing more than 300,000 rounds each year. Approximately 25 million euros from the total package will be allocated to building and operating the ammunition plant, which will be run in cooperation with a local Estonian partner. Beyond industrial infrastructure, the broader cooperation program also features training initiatives for defense personnel, equipment support programs, and expanded research and development collaboration with Estonian defense companies. Hanwha Aerospace emphasized that the initiative is intended to create a long-term partnership rather than a one-time investment. According to the company, the overall economic impact of the project and related collaborative programs could reach around 160 million euros. When combined with the initial investment, the total potential value of the partnership could rise to roughly 260 million euros. Estonian Defense Minister Hanno Pevkur noted that the investment is connected to the country’s ongoing procurement of the Chunmoo rocket artillery system, highlighting how the partnership will strengthen Estonia’s defense capabilities while also supporting the local defense industry and workforce.
