Leading South Korean defence company Hanwha Defense has joined forces with high-profile Australian steel maker Bisalloy Steels to build armoured combat vehicles and self-propelled howitzers for international markets.
Hanwha Defense signed a Memorandum of Understanding (MoU) on 7 February with Bisalloy, a specialist performance steel manufacturer and supplier headquartered in New South Wales, Australia. Under the agreement, Hanwha Defense will procure Bisalloy steel for its signature land defense platforms, such as the Redback Infantry Fighting Vehicle (IFV) and the K9 Self-Propelled Howitzer, for exports to international markets beyond Australia.
Bisalloy is one of the Australian Industrial Capability (AIC) partner firms for Hanwha Defense Australia, which is participating in Commonwealth’s LAND 400 Phase 3 program with the Redback IFV. Both companies will also conduct joint technical analysis and development of integration of Bisally steel into the Redback and K9 for exports to the market of Europe and others.
“We’re pleased to work closely with Hanwha Defense and enter its global supply chain,” said Michael Gundy, Managing Director of Bisalloy. “Bisalloy steel’s capability has been proven over its 40-year history, and through working together we believe we will contribute to Hanwha’s product portfolio and its international business. We look forward to expanding our business with Hanwha in the years ahead.”
Armoured steels are a crucial component of army strength, while demand for establishing secondary supply chain in critical materials is forecast to accelerate due to the COVID-19 pandemic and increasing security threats. The MoU between Hanwha Defense and Bisalloy provides a practical example of how to cope with potential supply chain risk
“We are very excited to expand co-operation with Bisalloy Steels for international markets, as we have been delighted with Bisalloy steel’s proven quality through the performance of the Redback IFV,” said Son Jae-il, CEO and President of Hanwha Defense. “We will explore ways to use Bisalloy steel further for the K9 Self-Propelled Howitzer, as well as the Redback IFV. Upon the recent contract with Egypt over the K9, in particular, we will review ways to utilise the Australian steel for the K9A1EGY project first.”
Hanwha Defense signed a $1.6bn contract on 1 February with the Egyptian Ministry of Defense to jointly produce the K9 and other support vehicles.