It is no secret that the U.S. lags behind Europe in terms of artillery ammunition production. Therefore, to remedy the situation, the Americans are turning to South Korea's Hanwha Systems.
The American branch of the company will receive a potential production facility in Pine Bluff Arsenal in Jefferson County, Arkansas, from the U.S. Army under an extended lease. It is planned to invest $1.3 billion in the development of a new enterprise.
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Hanwha Systems USA will manufacture "energy materials" designed to boost the speed and range of U.S. ammunition production. It is likely that this refers to substances used in artillery shells.
Overall, the contract is presented as an opportunity to close critical gaps in the production of artillery shells in the United States. At the same time, it will serve as a "springboard" for securing new contracts for the country’s army.
According to the company's reports, the new production facilities will be deployed on the base of unused U.S. Army property. This is a good opportunity to acquire a new asset without incurring additional losses.
It is important to note that only a preliminary agreement has been signed with Hanwha Systems, which will be finalized in the coming months after several checks. Further details about this project may emerge in the future.
In general, the involvement of the South Korean industrial giant in increasing ammunition production indicates that the U.S. is rapidly trying to reduce its lag in this area, where Rheinmetall manufactures 1.5 million artillery shells per year. At the same time, it is investing in propellant materials, one of the most critical components currently in short supply on the global market, along with explosives.
Hanwha Systems is also among the candidates to supply its K9 self-propelled howitzers to the U.S. military, which have been equipped with an American 155-mm gun. Increased shell production could improve its chances of securing this potential contract.
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