TLDRs;
- Hanwha Aerospace signed a $110 million defense contract with Sweden to supply 155mm modular charge systems.
- The deal marks the first order in a three-year framework agreement with potential for further purchases.
- Deliveries are set to begin in 2026, enhancing Sweden’s artillery flexibility and NATO interoperability.
- The partnership underscores Hanwha’s growing footprint in Europe’s defense supply chain.
Hanwha Aerospace, one of South Korea’s largest defense contractors, has secured a 150 billion won (US$110 million) contract to provide modular charge systems (MCS) to Sweden’s armed forces.
The agreement was formalized with the Swedish Defence Materiel Administration (FMV) during the Association of the United States Army (AUSA) 2025 meeting in Washington, DC.
The deal represents a significant milestone in Hanwha’s efforts to expand its European defense partnerships. It follows a similar contract signed last year, signaling sustained confidence in Hanwha’s artillery technology. Deliveries under this new contract are expected to begin in 2026, strengthening Sweden’s ability to modernize its long-range firepower.
Framework Agreement Enables Multiple Future Orders
According to details released by Hanwha and FMV, this $110 million contract is the first call-off within a three-year framework agreement that allows for multiple follow-on orders over time.
Such flexible agreements are increasingly used by European defense agencies to ensure steady ammunition supply amid shifting security needs.
Sweden’s FMV has previously adopted similar frameworks across various defense programs, including a ten-year small-caliber ammunition deal structured with an initial three-year purchase window. This modular arrangement gives both sides the ability to scale procurement in line with evolving military requirements and budgetary allocations.
Ammunition System Designed for Flexibility and Precision
The Modular Charge System (MCS) that Hanwha will deliver is a NATO-compliant 155mm propellant technology. Unlike fixed-charge propellants, modular systems enable artillery crews to adjust firing power and range by combining or removing individual charge units. This flexibility provides greater accuracy and efficiency during dynamic operations.
The MCS is compatible with multiple modern artillery platforms, including Hanwha’s own K9 Thunder self-propelled howitzer, which has already been adopted by several NATO and European nations. For Sweden, the system will enhance the Archer L/52 howitzer, its primary 155mm self-propelled artillery unit, improving range adaptability and response speed.
As Europe continues to reassess defense logistics in the wake of regional security challenges, such advanced artillery systems play a pivotal role in ensuring operational readiness and strategic deterrence.
Nordic Cooperation and Supply Chain Opportunities
Hanwha’s deal with Sweden also fits into broader Nordic defense collaboration efforts. Sweden and Denmark are already participants in a Nordic Strategic Partnership Agreement designed to secure ammunition production and supply resilience. Finland and Norway, through their joint ownership of Nammo, a Nordic ammunition manufacturer, also contribute to the region’s expanding defense ecosystem.
Opportunities for further cooperation are expected to arise as FMV continues to issue tenders through Kommers Annons, Sweden’s public procurement portal. Suppliers working with FMV are required to adhere to Swedish procurement and social responsibility standards, including compliance with International Labour Organization (ILO) conventions.
FMV has expressed interest in leveraging commercially proven technologies from private industry to accelerate innovation in military materiel. This approach aligns with Hanwha’s proven ability to adapt its existing artillery systems to NATO standards, providing a strong foundation for long-term collaboration.
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