Hanwha Aerospace Co. Advanced discussions with the Kingdom of Saudi Arabia on the cooperation of potential weapons, as the Middle East becomes the main focus of the company, according to its global defense business.
The increasing opportunities in the region are a major reason for the South Korea defense contractor to advertiseStock sale planMichael Coulter, who won the title of International Defense Chairman and CEO of Hanoa at the end of last year, said last month to raise funds.
“We are in discussions in Saudi Arabia and the United Arab Emirates at the present time about programs that will create the ability in the Middle East, which deal with sovereignty issues,” Coulter said in an interview with Bloomberg. “Coulter said in an interview with Bloomberg. “There is a real opportunity for us to face security challenges in the Middle East through local facilities.”
Hanwha was one of the largest beneficiaries of the boom in global demand for Earth weapons after the outbreak of wars in Ukraine and the Middle East. CompanyThe stocks roseNearly 30 times over the past five years, the first Asian shares this year. The leading weapons of the company, known for their ability to connect weapons faster and cheaper than competitorsK9 self -defense for the hamzers.
The shares of the company decreased by 2.1 % on Tuesday, while Koype did not change the standard.
Coulter, a former American navy officer, said that Hanoa still decides the exact form of her involvement in Saudi Arabia, but it may be able to announce an agreement later this year.
He said: “We have not made a complete decision yet whether it was attached to the Kingdom of Saudi Arabia, a joint project, a partnership, or we support a Saudi defense company, and that is that, but the demand for the market exists.”
Hanwha initiatives come at a time when the Kingdom of Saudi Arabia invests trillions of dollars in a plan to develop a non -oil economy, including a goalsettlement50 % of its military spending by 2030 under the plan called Vision 2030.
Arms sales in the Middle East are a sensitive issue for South Korea, as the country seeks to balance its relations with Arab countries and its relations with its only ally to the United States, which have long -term security relations with Israel.
Controversial
Hanwha earlier this month reduced the sales of the planned shares to 2.3 trillion ($ 1.6 billion) from 3.6 trillion Won, after investors and financial authorities outbreak. The financial supervision service also objected to its revised plan.
Coulter said that the decision to reduce the offer showed “a very responsible preparation by a company to listen to its investors and shareholders.”
“Yes, there is a possibility of slight alleviation in the short term, but look at our busy record, look at the market opportunity, we have walked everyone through where we make investments and return on these investments from the point of view of work,” he said.
Europe plans
Hanwha is also in talks with a number of Western European countries on how to help them increase their ability to make weapons in facing growing global instability.
“We are not determined to come and take over the European partners and get them.” Colleter said. “We are talking to governments, but we are also talking to the industry and say where did you invest? Where did you invest? Where can we be a partner?”
Coulter said he was optimistic that the United States and South Korea would reach a deal that would avoid a long trade conflict resulting from the Trump administration’s threat to high tariffs.
He said: “We are very confident that the two governments will reach the decision.”
“There is a great presence in the American army.
This story was originally shown on Fortune.com
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