Construction has officially begun on Hanwha Armoured Vehicle Centre of Excellence (H-ACE) Europe, the first production facility of Korea’s Hanwha Aerospace on the European continent. The groundbreaking ceremony took place in Petrești, Dâmbovița County, marking the concrete implementation phase of a strategic investment for Romania’s defense industry and regional economic development.
The new facility will span approximately 181,055 square meters and will include advanced assembly lines, testing and validation facilities, a 1,751-meter test track, and research and development laboratories. In its initial phase, the plant will locally manufacture the K9 Thunder self-propelled howitzer and the K10 ammunition resupply vehicle, systems contracted by the Romanian Army under the 2024 agreement covering 54 K9 howitzers and 36 support vehicles.
A Strategic Investment with European Scope
According to company representatives, the project supports Romania’s ambition to become a European hub for defense manufacturing while contributing to NATO and EU security objectives. Local production and supply chain integration could reach localization levels of up to 80%, through the involvement of Romanian industry in assembly, integration and maintenance processes.
In his address, Jae-il Son, CEO of Hanwha Aerospace, emphasized the broader significance of the project: “The start of construction represents more than the building of a production facility. It lays the foundation for transforming Hanwha Aerospace Romania into a truly Romanian defense company and a strategic hub for long-term cooperation between our countries. This is Hanwha Aerospace’s first production facility in Europe and will become a key center for European land systems. Beyond manufacturing, we are committed to technology transfer and close cooperation with local industry, integrating Romania as a key pillar in our global defense supply chain.”
Over the long term, H-ACE Europe could evolve into a regional hub for advanced land systems, including infantry fighting vehicles and unmanned technologies, with an estimated impact of up to 2,000 direct and indirect jobs. Hanwha Aerospace is already cooperating with more than 30 Romanian partners, laying the groundwork for extensive industrial collaboration under its long-term localization strategy. “Hanwha Aerospace is ready to support Romania not only as a beneficiary, but also as a producer, supplier and exporter on the global defense market. The concept of ‘Made in Romania’ will be central to our approach,” Son added.
High-Level Participation Reflects Strategic Partnership
The ceremony brought together senior Romanian and Korean officials, reflecting the depth of the bilateral Strategic Partnership. Among the Romanian participants were Deputy Prime Minister Barna Tánczos, Minister of Economy Ambrozie-Irineu Darău, Presidential Advisor for National Security and Foreign Policy Marius-Gabriel Lazurca and Dâmbovița County Council President Corneliu Ștefan. Representing Korea was Lee Yong-cheol, minister of the Defense Acquisition Program Administration (DAPA).
During his official visit to Romania (Feb. 10–11), Minister Lee held meetings with senior Romanian officials responsible for defense procurement and economic coordination. Discussions focused on strengthening bilateral defense cooperation and supporting Korean defense exports, including the K2 main battle tank, produced by Hyundai Rotem, and the Redback infantry fighting vehicle developed by Hanwha Aerospace.
Minister Lee underlined the Korean defense industry’s competitive pricing, rapid delivery capability and experience with localized production models, such as the K2 export to Poland, emphasizing that tailored industrial cooperation could contribute directly to Romania’s economic and security objectives.
Regional Impact and Industrial Continuity
Dâmbovița County has a long-standing tradition in Romania’s defense industry, hosting key facilities such as Automecanica Moreni, Uzina Mecanică Mija and Uzina de Produse Speciale Dragomirești. The presence of the IVECO military truck factory in Petrești further reinforces the area’s industrial profile, creating a solid foundation for the integration of advanced land systems manufacturing.
The establishment of H-ACE Europe builds upon this legacy, strengthening an already existing defense manufacturing ecosystem rather than starting from scratch. By combining local expertise with advanced Korean technology and production know-how, the project is expected to accelerate modernization while preserving and upgrading Romania’s industrial capabilities.
Local authorities have emphasized that the investment also aligns with broader regional development strategies. Ongoing infrastructure projects — including the Găești bypass, currently under construction, and the planned Găești–Ploiești express road — are set to improve connectivity with major national and European transport corridors, facilitating logistics, supply chain integration and future export capacity.
Beyond direct production, the facility is anticipated to generate significant multiplier effects in related sectors, from engineering services and technical training to maintenance, subcontracting and research partnerships. In this sense, H-ACE Europe represents not only a defense manufacturing investment, but also a catalyst for sustainable regional economic growth.
Expanding Academic and Innovation Cooperation
Industrial cooperation is also being complemented by academic partnerships. On Jan. 27, a delegation from Busan National University visited the National University of Science and Technology POLITEHNICA Bucharest together with representatives of Hanwha Aerospace Romania.
The visit, hosted by the CAMPUS Research Institute, focused on expanding student exchange programs supported by Hanwha Aerospace scholarships. Delegates toured advanced research laboratories dedicated to autonomous vehicles, unmanned aerial systems and space exploration technologies, highlighting the link between industry, innovation and talent development. Through such initiatives, Korea–Romania cooperation extends beyond production to knowledge transfer, technological development and long-term human capital investment.
The groundbreaking of Hanwha Aerospace’s first European production facility signals a new stage in Korea–Romania defense relations — one defined by localized production, technology transfer and industrial partnership, deepening bilateral trust while contributing to regional security, economic resilience and long-term strategic cooperation in Europe.
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