Hanwha Aerospace Co., a defense industry unit of South Korea's Hanwha Group, said Thursday it will supply a modular charge system (MCS) for 155-millimeter artillery shells used by members of the North Atlantic Treaty Organization (NATO) to a major British defense firm.
Hanwha will export MCS for NATO standard artillery rounds in a deal worth 175.9 billion won (US$135.4 million) to BAE Systems Inc., marking the first deal of its kind, according to company officials.
MCS is a cylinder-shaped propellant that helps dispatch warheads to a target.
Hanwha began developing MCS in 2019 amid escalating geopolitical tension in Europe and completed its development earlier this year.
If Britain decides to acquire South Korea's K9 howitzers for its self-propelled artillery project, a package of K9s and MCS can be exported, the officials said.
"With our first MCS export for NATO members, we will improve our cooperation with British defense companies in various areas to expand South Korea's arms exports and contribute to the security of the free world," Son Jae-il, Hanwha Aerospace CEO, said.
The South Korean company said it has also signed a memorandum of understanding with Babcock International Group to expand bilateral cooperation in global projects encompassing land, water and air.