A ribbon-cutting ceremony is held for Hanwha Defense USA’s new office at Pine Bluff Arsenal in Arkansas on Tuesday. (Hanwha Aerospace)
A ribbon-cutting ceremony is held for Hanwha Defense USA’s new office at Pine Bluff Arsenal in Arkansas on Tuesday. (Hanwha Aerospace)

Hanwha Defense USA, the US subsidiary of Hanwha Aerospace, held an opening ceremony for its local office Tuesday at Pine Bluff Arsenal in Arkansas, marking the first step toward developing the ammunition production hub.

The event was attended by Arkansas Gov. Sarah Huckabee Sanders, Jordan Gillis, assistant secretary of the US Army for installations, energy and environment, Arkansas Commerce Secretary Hugh McDonald, and other federal, state and local officials.

Hanwha Defense USA was selected in January as the lessee for a site at PBA under a US Army solicitation.

Hanwha Aerospace plans to build facilities to produce 155-millimeter artillery shell components and propellant charges at the site, with an integrated manufacturing system covering the entire production process from raw materials to finished ammunition. The company plans to invest $2.2 billion over seven years to establish the Hanwha Advanced Manufacturing Campus and create about 400 jobs.

The investment is part of Hanwha Aerospace’s broader expansion in the US. Last month, the company signed a contract with the US Army to supply a K9MH wheeled self-propelled howitzer prototype for the Mobile Tactical Cannon program and is preparing a facility in Opelika, Alabama, for prototype assembly, integration and testing. The Alabama artillery site and Arkansas ammunition facility will serve as two key bases for expanding its US ground defense business.

“We are delivering on our commitment to strengthen the defense industrial base through investment and job creation, backed by our manufacturing capabilities,” said Michael Coulter, CEO of Hanwha Defense USA.

“We will continue to enhance the capabilities of the US ammunition industry while contributing to expanded defense cooperation between the two countries.”

By Jung Young-seon (jyoungseon8@heraldcorp.com)