Hanwha is planning a major expansion of its US defense manufacturing footprint with a proposed $1 billion facility dedicated to producing Modular Charge Systems for 155mm howitzer ammunition. According to a company official, the investment is part of a broader effort to transform Hanwha’s US subsidiary into a fully integrated American defense company.
The South Korean group is currently evaluating potential locations for the plant, which is expected to incorporate highly automated production lines modeled on Hanwha’s existing facilities in South Korea. The project will be financed entirely with the company’s own capital.
Company officials said construction of the facility is expected to begin in 2026, with the goal of achieving full production by 2030. Once operational, the plant is intended to deliver fully US-localized modular charges manufactured using domestically sourced raw materials.
Hanwha to produce triple-base propellants at new US facility
Hanwha aims to introduce its fully automated, vertically integrated production capabilities to the United States, said Lee Woo Jin, plant manager at the company’s ammunition facility in Yeosu, South Korea. The new US plant is expected to generate approximately 200 jobs and achieve around $500 million in annual revenue once it reaches full operational capacity, Breaking Defense reports.
Lee noted that Hanwha Defense USA has already started hiring US-based engineers to handle the facility’s design work and expects to submit environmental permit applications in January. Once operational, the site will be able to manufacture key energetic materials, including nitrocellulose and nitroglycerin, process wetted nitroguanidine, and combine them into triple-base propellants for 155mm artillery charges.
The propellants are loaded into combustible cartridge case modules, which are then combined into complete modular charge systems. These include the Modular Artillery Charge System used by the US Army’s 39‑caliber 155mm howitzers, as well as variants designed for 52‑caliber systems now being evaluated under the Army’s Self-Propelled Howitzer Modernization program.
Company eyes base bleed shell production at future US plant
Hanwha dominates South Korea’s warhead and propulsion systems sector, accounting for more than 90 percent of the domestic market. The company’s involvement in energetic materials and artillery propulsion dates back to the 1970s, when it began producing artillery charges, laying the foundation for its current position as a key supplier to the country’s defense industry.
Hanwha’s existing ammunition plant in Yeosu currently manufactures about 1.2 million modules annually, with plans to increase output to 1.6 million by 2028. In parallel, the company is constructing a second facility in Boeun, which is expected to reach comparable production capacity in 2027.
Furthermore, the company said the planned US plant could be expanded to include a Base Bleed Unit production line for extended-range artillery shells. Such an expansion would significantly broaden the site’s manufacturing scope and could increase the total workforce to around 300 employees.
The South Korean conglomerate has also indicated it may expand its US operations to include the production of rocket motors for artillery rockets and missiles, depending on market demand. If pursued, any future rocket motor manufacturing would mirror the company’s existing capabilities at its Daejon facility in South Korea.