Hanwha Aerospace has broken ground on an armoured vehicle production facility in Petrești, Dâmbovița County, in a move to establish its first manufacturing site in Europe.

The new centre, called the Hanwha Armoured Vehicle Centre of Excellence (H-ACE) Europe, aims to strengthen Romania’s defence manufacturing capacity and support the country’s involvement in the European defence sector as well as broader NATO security objectives.

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The facility will cover an area of approximately 181,055m2 and include assembly lines, testing facilities, a driving test track extending 1,751m, and research and development laboratories.

Initial operations at H-ACE Europe will focus on the local production of the K9 Self-Propelled Howitzer and K10 Ammunition Resupply Vehicle.

Through its Hanwha Aerospace Romania subsidiary, the company targets up to 80% localisation through Romanian industry participation in assembly, integration, testing, and ongoing support.

Hanwha Aerospace Romania plans for the site to potentially expand over time to produce additional land systems such as infantry fighting vehicles, long-range precision strike systems, and unmanned ground vehicles.

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The company states that further development linked to the infantry fighting vehicle programme could generate as many as 2,000 direct and indirect jobs.

Hanwha Aerospace president and CEO Jae-il Son said: “Today’s groundbreaking represents more than the construction of a production facility. It is the foundation for Hanwha Aerospace Romania’s evolution into a truly Romanian defence company, and a strategic platform for long-term defence cooperation between our two countries.”

Currently, Hanwha Aerospace Romania is working with over 30 Romanian partners as part of its localisation strategy.

The company indicates it will continue collaborating with local industry to support integration into its global supply network, skills development, technology transfer, and long-term employment.

“Hanwha Aerospace is committed to working alongside Romania so that it can grow not only as a buyer, but as a producer, seller, and exporter within the global defence market. ‘Made in Romania’ will be at the heart of our approach,” Son added.

In July 2024, Hanwha Aerospace signed an agreement with Romania to deliver 54 K9 Self-Propelled Howitzers and 36 K10 Ammunition Resupply Vehicles.

This deal marked Romania as the tenth member of the K9 User Club and the sixth NATO country to operate the K9 system.