Hanwha Aerospace Signs Four Agreements with Lithuanian Firms for 40mm Counter-Drone Systems

South Korea's Hanwha Aerospace has signed four memoranda of understanding with Lithuanian companies to explore local manufacturing and integration of its 40mm Wheeled Anti-Aircraft Gun (WAAG) system, expanding industrial cooperation in the Baltic defence market.

The agreements were signed during an Industry Day in Vilnius on October 23, 2026, and announced by the company on October 26. They involve Lithuanian companies KMT, Cosmos Construction, Nortal and T&G Lithuania.

The proposed cooperation covers vehicle integration, turret manufacturing, cable production and the integration of command-and-control technology into NATO networks.

The initiative comes as Lithuania considers additional short-range air defence and counter-drone capabilities, including possible cooperation with South Korean manufacturers.

Four Lithuanian Companies Identified for Potential Production

Hanwha Aerospace has outlined specific industrial roles for each of its four potential partners.

KMT, a manufacturer of truck bodies and specialised vehicle equipment, will explore integrating the 40mm WAAG system onto wheeled platforms.

Cosmos Construction, a Lithuanian metalworking company, will examine opportunities to manufacture turret shells and associated metal structures.

T&G Lithuania has been identified as a potential partner for cable manufacturing, supporting the system's electrical and integration requirements.

Nortal, a software and technology company, will explore integrating the system's command-and-control architecture with NATO networks.

Together, these areas could establish a local supply chain covering mechanical components, vehicle integration and military software interoperability.

However, the agreements remain at the memorandum stage. Hanwha Aerospace has not announced manufacturing contracts, investment amounts, production schedules or confirmed orders for the WAAG system.

Hanwha Promotes 40mm WAAG Against Drone Threats

The WAAG is a mobile anti-aircraft artillery system developed to engage low-altitude aerial threats, including drones and unmanned aircraft.

It combines automated fire-control technology, target tracking and 40mm ammunition to provide a gun-based response to aerial threats.

Such systems are attracting attention as European armed forces seek additional ways to intercept relatively inexpensive drones without relying exclusively on surface-to-air missiles.

At the Vilnius event, Hanwha Aerospace presented a wider portfolio of layered air defence technologies, including radar and electro-optical sensors, command-and-control systems and counter-UAS capabilities.

The company's approach combines detection, target identification and engagement technologies within a broader air defence architecture.

Local integration and manufacturing partnerships could improve the competitiveness of its equipment in markets where domestic industrial participation is an important procurement consideration.

Lithuania Previously Discussed South Korean Air Defence Procurement

The agreements follow earlier discussions between Lithuanian officials and South Korean representatives about acquiring short-range air defence equipment.

As AdriaDefense reported in August, Lithuanian Defence Minister Robertas Kaunas discussed possible procurement of South Korean 30mm to 40mm anti-aircraft systems, with delivery speed, cost and potential domestic production identified as key considerations.

At that stage, no manufacturer, weapon system or industrial partner had been formally identified for the potential acquisition.

The latest agreements provide a more specific industrial framework involving Hanwha Aerospace and four Lithuanian companies.

They do not, however, establish that Lithuania has selected the WAAG system for procurement.

Lithuania is also pursuing other counter-drone technologies. In September, AdriaDefense reported on the country's accelerated procurement of interceptor drones and new radar systems, reflecting a broader effort to strengthen protection against low-flying aerial threats.

Hanwha Expands Its European Industrial Partnerships

The Vilnius Industry Day brought together more than 80 participants from approximately 30 Lithuanian companies.

Organised with the Lithuanian Defence and Security Industries Association (LDSIA), the event provided an opportunity for local manufacturers to present their capabilities and discuss potential cooperation with Hanwha Aerospace.

The South Korean company also became a member of LDSIA, creating an additional channel for engagement with Lithuanian defence manufacturers.

Robert Sangwon Park, senior vice president and head of Hanwha Aerospace's Air Defence and Missile Launcher Systems Business, identified Lithuania as a long-term strategic partner and highlighted opportunities in technology transfer, joint development and lifecycle support.

Hanwha is already expanding its defence business in other parts of Europe.

In September, the company secured a €411.8 million contract to supply 18 K239 Chunmoo multiple rocket launcher systems to Croatia.

As AdriaDefense reported, the Croatian configuration will also incorporate Poland's TOPAZ battlefield management system, demonstrating the role of European technology partners in Hanwha's international programmes.

For Lithuania, the four new memoranda could create opportunities for domestic manufacturers to enter an additional segment of the European air defence supply chain.

For Hanwha Aerospace, the agreements establish potential local industrial capabilities that could support future WAAG sales and integration projects.

The next significant development will be whether the memoranda progress into binding manufacturing agreements or a Lithuanian procurement decision.

Source: Hanwha Aerospace press release, October 26, 2026, distributed by Joint Forces News; Lithuanian Defence and Security Industries Association; LRT/BNS.