Following the announcement that Hanwha Defense has been selected as the preferred bidder for Australia’s Self-Propelled Howitzer (SPH) project;

Mathew George, Ph.D., Aerospace & Defense Analyst at GlobalData, a leading data and analytics company, offers his view:

“Hanwha Defense’s announcement confirms a steady progress the company is making in growing its foothold in Australia. At the same time, it shows the commitment of the Government of Australia to invest in and build the local defense industry. Given the economic hardships locally, Australia will look at means to ensure this project moves forward to secure jobs, build local talent and retain local expertise in to the future.

“Hanwha Defense is aware of the industry-wide trend to localize, and seems to suggest that it will follow this path in other markets. For Australia, it proposes to provide the foundations for local jobs and manufacturing of the K9 and K10 in Geelong, Australia. It even agreed with the estimate of this project providing for 350 jobs while suggesting that it would look to continue the model elsewhere.

“As both parties work towards a contract, it’s good news on both the fronts. It shows Hanwha as a serious player in the defense market with a growing stature. For Australia, it allows the government some potential good news as it deals with the first recession in 30 years.”