South Korean defense company Hanwha Aerospace has announced a major €100-million investment to strengthen Estonia’s defense industry. The investment plan includes building a maintenance and repair center to support military systems supplied to the Estonian Defence Forces, such as the K9 Thunder self-propelled howitzers and K239 Chunmoo rocket launcher systems. In addition to the maintenance facility, the project also involves establishing a 40-millimeter ammunition production plant capable of manufacturing more than 300,000 rounds annually. Around €25 million from the investment will be dedicated to the construction of the ammunition factory, which will operate in partnership with a local Estonian company. The program will also support training initiatives, technical support, and joint research and development projects with local firms. Hanwha estimates that the overall economic impact of the project and related cooperation could reach around €160 million, raising the total value of collaboration to about €260 million. Estonia’s defense minister confirmed that the investment is linked to the country’s procurement of the Chunmoo rocket artillery system.
