South Korea’s Hanwha Aerospace Co. won a contract worth at least A$5 billion ($3.4 billion) to build 129 infantry fighting vehicles for the Australian army, a deal that Canberra described as one of the largest military acquisitions in the country’s history.
(Bloomberg) — South Korea’s Hanwha Aerospace Co. won a contract worth at least A$5 billion ($3.4 billion) to build 129 infantry fighting vehicles for the Australian army, a deal that Canberra described as one of the largest military acquisitions in the country’s history.
The first of the Redback vehicles is expected to be delivered in early 2027, Australian Defense Industry Minister Pat Conroy said Thursday. All 129 will be built by Hanwha Defense Australia in the southern state of Victoria.
Conroy said contract negotiations had yet to begin with Hanwha, but the total project was expected to be valued at between A$5 billion and A$7 billion. The deal was “one of the largest capability acquisition projects in the history of the Army,” he said.
Australia is working to reshape its armed forces after a strategic review released in April found the military was not “fit for purpose.” As a result, the country is improving its long-range deterrence capabilities while building up domestic defense manufacturing.
Son Jae-il, chief executive officer and president of Hanwha Aerospace, said the contract would strengthen ties between Australia and South Korea.
–With assistance from Sangmi Cha.
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