The American subsidiary of South Korea-based Hanwha Defense said Wednesday it plans to invest $1.3 billion to build a munitions line after the Army awarded it a production lease at the Pine Bluff Arsenal in Arkansas.
Upgrading the U.S. defense industrial base is one of the Trump administration’s strategic priorities. Hanwha Defense USA officials said the agreement will help transform domestic munitions production.
“Hanwha will produce critical energetic materials in the U.S. that will enhance the speed and range of U.S. munitions and address critical shortfalls in the U.S. Army’s munitions production capacity,” Mike Smith, Hanwha Defense USA’s chief operating officer, said in a statement. “Not only will this project introduce advanced manufacturing technologies, but it will create skilled jobs in the region and position Hanwha to support follow-on U.S. Army contracts.”
Hanwha Defense USA officials said the agreement will let the company transform an underutilized Army property into a “modern asset” that will advance U.S. national defense priorities.
“We look forward to further strengthening America’s arsenal of freedom and continuing the process of site selection with Pine Bluff Arsenal,” said Hanwha Defense USA CEO Michael Coulter.
The lease agreement with the Army is preliminary, pending final negotiations and due diligence over the coming months, Hanwha officials said.
• Mike Glenn can be reached at mglenn@washingtontimes.com.
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