Hanwha Aerospace to Begin Construction of $1 Billion Defense Factory in Romania in 2026
BUCHAREST — South Korea’s Hanwha Aerospace will begin construction of its long-anticipated defense production plant in Romania in the first quarter of 2026, marking one of the largest defense industrial investments in Eastern Europe. The Romanian Ministry of Economy confirmed the timeline this week, noting that the new factory will be built in Petrești, Dâmbovița County, south of Bucharest.
The facility stems from a $1 billion (€862 million) deal signed last year between Hanwha Aerospace and Romania’s Ministry of Defense to supply 54 K9 Thunder self-propelled howitzers and 36 K10 ammunition resupply vehicles. The agreement, part of Romania’s broader effort to modernize its armed forces amid growing regional security concerns, also includes technology transfer and local production components.
According to the ministry, the first tranche of 18 K9 howitzers and 12 K10 resupply vehicles will be delivered directly from South Korea, while construction of the Romanian plant is underway. The remaining two tranches will be assembled locally once the facility becomes operational—expected within two years of groundbreaking. Deliveries of the first systems are scheduled to begin in 2027.
During an official visit to Seoul, Romanian Minister of Economy Radu Miruță emphasized that the collaboration with Hanwha Aerospace goes beyond arms procurement.
“As Minister of Economy, I must ensure that the operational needs of the Romanian Army are translated into efficient commercial partnerships,” Miruță said. “This investment is not just about equipment—it’s about job creation, integrating Romanian firms into the supply chain, and ensuring long-term sustainability through competitiveness.”
Miruță’s visit also included talks with executives from Hanwha and Hyundai Rotem to explore further cooperation in defense production, joint research, and technological development. Romania is actively courting South Korean industrial groups as part of a wider push to attract foreign investment into its defense sector and strengthen its role within NATO’s eastern flank.
The initiative aligns with Romania’s participation in the EU’s new Security Action for Europe (SAFE) program, designed to enhance defense capabilities across the bloc. Last month, Romania’s finance ministry announced that the country will receive €16.68 billion in defense loans under the SAFE program—the second-largest allocation after Poland.
With construction of Hanwha’s new facility set to begin in early 2026, Romania is positioning itself as a regional hub for advanced artillery production, deepening its strategic ties with both the European Union and key Indo-Pacific partners.
