Hanwha Aerospace announced today that it plans to invest approximately 100 million euros in Estonia to strengthen the independence and technological sovereignty of the Estonian defense industry ecosystem. Together with research and development activities with Estonian companies, the total economic impact of the package could reach up to 260 million euros.
According to Kalev Koidumäe, CEO of the Estonian Defense and Aerospace Industry, the investments will help create an important regional defense industry and maintenance center in Estonia for the Baltic and Nordic countries, strengthen the participation of local companies in the development of defense technology, and increase the independence of the Estonian defense industry.
The largest single investment is approximately 25 million euros, which will be directed to the construction of a 40 mm ammunition production facility in Estonia. The plant will operate in cooperation with a local manufacturer and will have a production capacity of over 300,000 rounds per year. This will allow Estonia to create its own ammunition supply chain and position the country as a center for ammunition production in the Baltic and Nordic regions.
23 million euros will be directed to the establishment of a maintenance and repair center of excellence (CoE), which will enable Estonia to maintain and repair K9 mobile artillery, Chunmoo rocket launchers and, in the future, infantry fighting vehicles.
In addition to infrastructure investments, Hanwha Aerospace plans to offer specialized training programs to strengthen the operational capabilities of the Estonian Defense Forces. It will also provide on-site equipment and component support so that Estonia can independently operate and manage the acquired weapon systems.
The company already cooperates with several Estonian companies: Nortal, SensusQ, Frankenburg Technologies, Marduk Technologies and Milrem Robotics.
