South Korea DAPA and Hanwha Defense’s anti-aircraft gun wheeled vehicle system contract will boost local supply chain, says GlobalData

Following the news that South Korean Defense Acquisition Program Administration (DAPA) and Hanwha Defense have signed a US$208m contract for the mass production of 30-mm anti-aircraft gun wheeled vehicle system (AAGW);

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

“This project has been in the works for around five years and has a localization rate of around 95%. Apart from modernizing anti-aircraft defenses from the present Vulcan system, the contract is expected to boost the local economy by encouraging companies to hire and improve the availability of assured jobs in the market.

“COVID-19 has had far-reaching consequences on all major economies, with some countries scaling back defense spending and a greater push on localization. Although South Korea has always encouraged the need to have a robust local defense industry, recent years have seen Korean firms expanding their reach in exports of defense systems. GlobalData expects this order will help Hanwha’s efforts to push the AAGW to international clients looking to improve and modernize mobile AA defenses.”

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