South Korean industrial giant Hanwha is poised for a massive investment in the United States, announcing plans for a billion-dollar factory dedicated to producing Modular Charge Systems (MCS) for 155mm howitzer ammunition. This strategic move aims to transform its American subsidiary into a full-fledged American defense company, thereby solidifying its strategic partnership with the US.
Hanwha: A Billion Dollars to Fortify American Defense
„Our goal is to bring this vertically integrated, fully automated production capability to the United States,” stated Lee Woo Jin, plant manager at Hanwha’s existing factory in Yeosu, South Korea, during a recent visit to one of the company’s facilities. Hanwha is currently evaluating potential sites for the new facility, which will feature automated production lines, mirroring those in South Korea. An official announcement regarding the location is expected later this month.
A Factory of the Future: Automated Production and Full Localization by 2030
Hanwha officials estimate that the new facility, entirely funded by its own capital, will begin construction in 2026. By 2030, it is expected to produce fully US-localized modular charges, utilizing US-made raw materials. The project is projected to create approximately 200 jobs and generate annual revenues of $500 million once fully operational. This will be Hanwha’s first such plant built outside South Korea and represents a key component of its broader efforts to become a strategic defense partner to the US. According to Lee Woo Jin, Hanwha Defense USA has already started hiring US-based engineers for design work and expects to begin environmental permit submissions in January. The new unit will enable the manufacturing of nitrocellulose and nitroglycerin, as well as the processing of wetted nitroguanidine, subsequently transforming them into what are known as „triple-base” propellants. These are packed into combustible cartridge case modules, which, when assembled, form complete MCS units, such as the Modular Artillery Charge System (MACS) used by the US Army’s 39 cal. 155mm howitzers, as well as those designed for 52 cal. howitzers, which the US Army is evaluating for its Self-Propelled Howitzer Modernization (SPH-M) program.
Responding to Global Crisis: MCS Technology, Essential for Modern Artillery
MCS systems represent a modernization of propellants for 155mm howitzers, replacing traditional bagged charges with individual, combustible case modules that propel howitzer shells. They can be combined in various configurations to achieve different ranges and muzzle velocities, which proponents say improves safety, simplifies logistics, and eliminates propellant waste. Artillery ammunition, especially 155mm, has seen immense demand since Russia’s invasion of Ukraine, which forced Kyiv to push Moscow’s forces back, particularly with long-range artillery. „By bringing this state-of-the-art manufacturing line to the US, we will be able to provide the US Army with a domestic source of triple-base propellant,” Lee Woo Jin emphasized.
Ambitions Beyond Ammunition: Expanding the Portfolio to Advanced Projectiles and Rockets
Hanwha’s plans also include a potential future expansion of the American plant to produce Base Bleed units – specially designed projectiles for extended range – which would increase the workforce to 300 employees. The company has also indicated the possibility of expanding its portfolio to include the production of rocket motors for artillery rockets and missiles in the United States, subject to market demand. Such an expansion would be similar to its existing facilities in Daejon, South Korea, where, as plant manager Jae Woong Ga noted, guided rockets such as the Chunmoo artillery rocket system and the Korean Tactical Surface to Surface Missile (KTSSM) are produced for South Korea’s military and export customers.
