Government and military officials from South Korea and Australia as well as representatives from Hanwha Aerospace participate in the opening ceremony of the Hanwha Armored Vehicle Center of Excellence, or H-ACE, in Geelong, Australia on Friday. (Hanwha Aerospace)

Hanwha Aerospace announced Friday that it has completed the construction of the Hanwha Armored Vehicle Centre of Excellence, or H-ACE in Geelong, Australia, signifying the first overseas production foothold for a Korean defense company.

“This facility represents Hanwha's commitment to Geelong, Victoria and Australia, demonstrating that the company is focused on the future of programs in this region, including howitzers, vehicles and other technological advancements beyond our current initiatives,” said Son Jae-il, CEO of Hanwha Aerospace.

“H-ACE is a significant part of our global defense supply chain, further strengthening the relationship between Australia and Korea. We will continue to collaborate with Australian companies and work towards integrating more of them into our global supply networks.”

High-ranking government and military officials including Australia’s Deputy Prime Minister and Defense Minister Richard Marles, Korea’s Minister of Defense Acquisition Program Administration Seok Jong-gun took part in the opening ceremony of H-ACE.

According to Hanwha Aerospace, the plant is set to begin the production of the AS9 self-propelled howitzer and the AS10 armored ammunition resupply vehicle in the second half of this year. The company plans to supply 30 AS9s and 15 AS10s to the Australian Army by 2027.

As for the supply contract to deliver 129 Redback Infantry Fighting Vehicle units to the Australian Army, Hanwha said the armored tanks will be manufactured at H-ACE after the delivery of prototype products in the first half of 2026. In December last year, Hanwha inked the $2.4 billion Redback Infantry Fighting Vehicle deal with Australia.

With the completion of H-ACE, Hanwha Aerospace has accelerated its entry into the AUKUS -- a trilateral security partnership between Australia, the United Kingdom and the United States -- market. The Korean defense firm will look to use H-ACE as a production base not only for Australia but also for allies as the demand for defense products increases in the Indo-Pacific region amid the geopolitical crisis.

H-ACE, which covers about 150,000 square meters, comprises 11 facilities including a production building, an assembly plant, a test driving site and a shooting range.