Hanwha Defense Australia Redback IFVs conduct a live fire demonstration during LAND 400 Phase 3 user evaluation trials at Puckapunyal Military Area, Victoria. Credit: Australian MoD

Australia’s ability to locally manufacture much of its land capability requirements, has progressed with the completion by Hanwha Aerospace of a bespoke heavy armour factory at Geelong, in the southern state of Victoria.

The site, dubbed the Hanwha Armoured Vehicle Centre of Excellence (H-ACE), will produce AS9 self-propelled howitzer (SPH), AS10 armoured ammunition resupply vehicles (AARV), and AS21 Redback infantry fighting vehicle (IFV), all of which have been ordered by Australia in recent years as part of its widespread modernisation of its defence capabilities across the land, sea, air, and space domains.

According to a 23 August 2024 release by Hanwha Aerospace, the facility is expected to “strengthen the relationship between Australia and South Korea”, bringing high-technology vehicle manufacturing back to the Geelong region.

Jae-il Son, CEO of Hanwha Aerospace said that H-ACE was a “significant” part of the company’s defence supply chain, with plans to integrate more Australian companies into its global networks.

Australia’s original plans for Land 400 Phase 3 saw a requirement for around 450 vehicles, but that has been significantly reduced with just 129 currently ordered. Credit: Australian MoD

The procurements are being carried out as part of the LAND 400 and LAND 8116 modernisation programmes, which are valued at around A$27.1bn ($18.2bn), and are among the largest acquisition projects in the history of the Australian Army.

The purchase of the AS9 and AS10 vehicles for the Australian Army was agreed in December 2021, with the deal valued at around $730m under the LAND 8116 initiative.

An Australian Army AS9 Huntsman self-propelled howitzer test fires a practice round at the Proof & Experimental Establishment in Port Wakefield. Credit: Australian MoD

Meanwhile, the Redback IFV deal was confirmed in July 2023 for around $4bn under Phase 3 of the LAND 400 programme, which will replace the ageing M113 armoured personnel carrier currently in service. Timelines in July 2023 called for the first vehicle delivery in early 2027, with the final vehicle delivered by late 2028.

According to 2023 anaylsis by GlobalData, Australia will spend approximately $7.5bn on military land vehicles through to 2033.

South Korea’s Hanwha is no doubt eyeing the H-ACE site as not only a location through which to supply Australian requirements, but also service wider regional acquisition prospects.

Building for the AS21 and AS9 future: H-ACE

The H-ACE facility, built on a site of approximately 150,000 square meters, features 11 facilities including the main building, production building, assembly plant, driving test site, and shooting range. The site, located an hour’s drive from Melbourne and ten minutes from Avalon Airport, will produce a confirmed quantity of 174 vehicles for the Australian military.  

The H-ACE site is initially manufacture AS21, AS9, and AS10 vehicles for Australia but the aspiration will be to use it to supply wider Asia-Pacific requirements. Credit: Hanwha Aerospace

According to the Australian government, the Australian Army is scheduled to acquire 30 SPH and 15 AS10 AARV (collectively termed the Huntsman family of vehicles), with delivery commencing from 2025.

Compared to the in-service M777 155mm howitzer, which has a maximum range of 18-22km, the AS9 can fire out to ranges of up to 60km, the Australian governments stated in a December 2023 release. The AS9 is based on the K9 Thunder manufactured by Hanwha, and in service with the Republic of Korea Army.

The Redback IFV, which has secured a supply contract for 129 units, will be manufactured at H-ACE following the successful delivery of prototype products after 2026, the 23 August Hanwha release stated.