Hanwha Corporation/Machinery and Canada's Heroux-Devtek Sign Landing Gear Contract for KF-X Fighter, Civilian Helicopter
[August 30, 2016] On August 30, Hanwha Corporation/Machinery signed a contract with Heroux-Devtek of Canada, a leading manufacturer of aircraft landing gear, to manufacture the landing gear system for the KF-X fighter aircraft project in South Korea.
The KF-X project, the largest defense project in Korea's history, will replace the Republic of Korea Air Force's aging F-4 and F-5 fighters. Hanwha Corporation/Machinery has signed a technology partnership agreement to lead the development of the new fighter aircraft's landing gear. Major component manufacture and assembly will take place locally, and Hanwha is expected to establish an integrated support system throughout the development process in order to assist in the testing and the eventual operation of the new aircraft. The KF-X project will complete its basic design phase by 2018, and finalize detailed designs by the end of 2019. The first prototype will roll off the assembly line in 2021 and the final shipment to be made by 2026.
The contract grants Hanwha Corporation/Machinery not only the $35 million deal for the project's landing gear system but it will also add to the company's total revenue by nearly $453 million after the shipment of the final product, exports and the completion of the maintenance contracts.
The contract simultaneously cements a deal with Heroux-Devtek for supplying landing gear systems to the Canadian company for the Airbus H-175 helicopter, currently on order to manufacture over 1000 of the helicopters. The successful completion of the initial contract for 230 units, totaling $27 million, will allow the company to receive an additional contract for $63 million with potential for more models to be added to the contract. The deal will enable Hanwha to enter a new market for aircraft landing gear systems, providing a strong growth driver for the company and enabling further business expansions in the machinery sector.
Hanwha Corporation/Machinery has long supplied hydraulics, flight control systems and fuel systems to Korea's frontline military aircrafts, beginning with the flight control systems for the UH-60 Blackhawk in 1993, the KF-16 fighter, the Surion helicopter and the T-50 trainer jet. The latest landing gear contract along with the possibility for additional contracts for hydraulics and fuel and control systems could also pave the way for new flight electrical and electronics systems – a the deal that could sharply increase Hanwha's revenue to $906 million for the KF-X project alone. Hanwha Corporation/Machinery plans to continue to take part in future risk and revenue sharing partnership1 projects in order to become one of the world's leading makers of aircraft auxiliary and electronics systems.
¹ Risk and Revenue Sharing Partnership (RSP)
Hanwha Corporation was founded in 1952 as Korea Explosives company, quickly becoming the leader in the South Korean explosives industry. It has since grown into a global manufacturing and trading company operating in four business areas—explosives, defense, trading, and machinery.
For more information, please visit: www.hanwhacorp.co.kr/eng
Hanwha Group, founded in 1952, is one of the Top-Ten business enterprises in South Korea and a “FORTUNE Global 500” company. Hanwha Group has 61 domestic affiliates and 325 global networks in three major sectors: manufacturing and construction, finance, and services and leisure. With more than 65 years track record of industrial leadership, Hanwha’s manufacturing and construction businesses encompass a broad range of fields from chemicals & materials, aerospace & mechatronics, total solar energy solutions, and global construction. The finance network, covering insurance, asset management and securities, is the second largest non-bank financial group in South Korea. The services and leisure sector offers premium lifestyle services with retail and resort businesses.
For more information, visit: www.hanwha.com
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