SEOUL, Aug 19 (Reuters) – The U.S. Army said on Tuesday it had selected Hanwha Defense USA, a unit of South Korea’s Hanwha Aerospace, to supply its new Mobile Tactical Cannon, marking a breakthrough for South Korea’s biggest defence company in the U.S. weapons market.
The agreement calls for Hanwha to deliver six systems, with an option for 12 more, in a deal worth up to $262.9 million.
After soldier testing, the results will inform whether to field the system. If approved, Hanwha’s system would replace the M777 towed artillery in selected units, the U.S. Army said in a statement.
The selection marks a milestone for Hanwha Aerospace as it seeks to leverage its globally successful artillery business into winning orders for U.S. artillery modernisation.
Shares in Hanwha Aerospace rose as much as 9.5% in early trade on Wednesday after the announcement, outperforming the wider KOSPI, which was down 6.7%.
Hanwha, a leading exporter of such systems according to South Korean analysts, has sold K9 self-propelled howitzers and other ground systems to countries including Australia, Norway and Turkey.
(Reporting by Joyce LeeEditing by Ed Davies)
