‘Here to stay’: Defence giant Hanwha speaks on Geelong projects

Korean defence giant Hanwha has reaffirmed its commitment to Geelong despite budget cuts slashing the scale of its potential projects.

Richard Cho Head of Hanwha Australia Picture: Mark Wilson

Korean defence giant Hanwha has reaffirmed its commitment to Geelong despite budget cuts slashing the scale of its potential projects.

Hanwha Defense Australia is building a $170m Avalon airport facility where it will manufacture 30 self-propelled howitzers.

The former Coalition government had committed to a second phase of that project – worth $1bn – but it was scrapped by the new federal government following the Defence Strategic Review.

The review found the weapons would not provide enough range or lethality.

Hanwha is also one of two companies short-listed to manufacture infantry fighting vehicles under the Land 400 Phase 3 project, which is also affected by budget cuts.

The contract was expected to be worth up to $27bn, with 450 infantry fighting vehicles to be manufactured, but the order is now expected to be slashed to just 129 vehicles.

But, managing director Richard Cho told the Australian Defence Magazine Congress on Wednesday that Hanwha “is here to stay”.

“Unfortunately, we’re at a critical point in this program and are unable to comment on the specifics,” he said of the Land 400 project.

“We’re working on what the Commonwealth has asked of us. Government will make a decision and announcements in due course.”

Work is under way on Hanwha's Avalon factory. Picture: Supplied

He said work at the Avalon centre, Hanwha’s first vehicle construction facility outside of South Korea, was well under way.

“Foundations have been poured, the majority of infrastructure is in the ground, and we are currently ahead of the construction schedule,” he said.

“We are working with local Geelong companies to build this facility.”

Mr Cho said: “Next time you attend the Avalon Airshow, you will be driving past a completed world-class facility”.

“Huntsman vehicles will be on the production line, over 200 people working on site and a supply chain that spans the nation and the globe.”

Following the release of the review in April, Defence Minister Richard Marles said the government’s response was about maintaining peace, security and prosperity in the region.

“There are a lot of tough decisions that need to be made, but in doing so, we are making them in the best interest of our Defence Force and our nation,” Mr Marles said.

Originally published as ‘Here to stay’: Defence giant Hanwha speaks on Geelong projects