South Korea’s top three defense manufacturers have enjoyed a bumper year-end, earning combined orders of more than 4 trillion won ($ 3.33 billion) in December alone and confidence to become bolder in overseas campaign.

Hanwha Techwin Co., a defense and aircraft engine parts making unit of South Korean conglomerate Hanwha Group, landed a series of six orders worth a total of 1.39 trillion won from the Korean Defense Acquisition Program Administration (DAPA) including 224.7 billion won supplies of parts for T-50-based aircrafts and 331.3 billion won worth in K-55 howitzers and K10 ammunition re-supply vehicles.

On the external front, it won a 355.9 billion won deal to supply aircraft engine parts to Rolls Royce plc., major British manufacturer of aircraft engines. Hanwha Techwin was assigned to build K-9 self-propelled howitzers worth 280 billion won for a state-run company in Poland.

LIG Nex1 Co., an aerospace manufacturer and defense company, received order to deliver 32.7 billion won worth mid-range infantry guided missiles named “Hyeongung” or “Raybolt” to Defense Ministry and will supply the missiles worth 1 trillion won over the next seven years to the Army and the Marine Corps of Korea.

Korea’s sole helicopter maker Korean Aerospace Industries (KAI) secured 2.2 trillion won worth long-term order from the Korea Coast Guard, Marine Corps and Korean Army for fleets in its self-developed helicopter Surion.

Richer from its impressive order book, local defense majors will go aggressive on overseas expansion through mergers and acquisitions to bolster their aircraft and engine portfolio.

Hanwha Group will join hands with a U.S. aero-engine firm to acquire a lucrative aircraft hydraulic system company. KAI plans to bid for the replacement project of the U.S. Advanced Pilot Training (APT), a procurement deal worth 17 trillion won. LIG Nex1 aims to up the share of exports to 20 percent by 2020 from the current 6 percent through increased shipment of precise guided missiles to developing countries.

By Kim Jung-hwan

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