Hanwha Aerospace makes first bid for US ground-weapons contract in $6.75b self-propelled gun program

Hanwha Aerospace has entered the race for a foothold in the US market, a potential bright spot amid a lean year for major defense contracts. The US Army is expected to announce results for its next-generation self-propelled howitzer program — known as the Mobile Tactical Cannon, or MTC — as early as this week, with the total contract value estimated at 10 trillion won ($6.75 billion). The outcome will determine whether the company can secure its first US ground-weapons order, backed by the proven technology of the K9 howitzer.

According to industry sources Tuesday, the US Army plans to select a contractor this month to build and test prototypes for the MTC program. The MTC is designed to replace the existing M777 155mm towed howitzer with a highly mobile wheeled self-propelled gun, with a planned production run of 500 units.

The Russia-Ukraine war has been a major driver behind the US Army's push to modernize its artillery. Analysts say the conflict has underscored the importance of "shoot-and-scoot" capability — the ability to fire and rapidly relocate — as a key factor in battlefield survivability, fueling demand for wheeled self-propelled guns over conventional towed howitzers.

The competition has drawn a field of global defense heavyweights, including Hanwha Aerospace, Germany's Rheinmetall, Britain's BAE Systems, Israel's Elbit Systems and US-based General Dynamics.

Hanwha Aerospace is competing with the K9MH, a proposal that combines a wheeled platform and a fully automated turret based on the tracked K9 howitzer.

Local production capability is the pivotal variable in the competition. The US Army is evaluating bidders on their ability to secure technical data rights, ensure compatibility with American ammunition and build out a domestic supply chain. In response, Hanwha Aerospace has been pushing an aggressive localization strategy.

Its subsidiary Hanwha Defense USA signed a three-year lease in April on an idle factory in Opelika, Alabama, committing roughly $2 million to set up a K9MH integration and testing facility. The company is also exploring construction of an ammunition factory in Arkansas at a cost of $1.3 billion, accelerating its efforts to establish a local supply chain.

Analysts caution, however, that significant hurdles remain before an actual contract award, given the US defense industry's longstanding emphasis on domestically produced weapons and local manufacturing.

The NATO-centered defense cooperation framework and Washington's "Buy American" stance remain persistent concerns. Hanwha Aerospace was recently edged out by a German competitor in a Romanian armored vehicle program, in part due to the EU's "Buy European" policy.

The broader industry view of Hanwha Aerospace's competitiveness is largely positive.

"The fact that the United States has participated as an observer in the 'K9 User Club' and shown interest in the K9 system is a factor that raises the likelihood of winning the contract," an industry official said.