Hanwha Systems signs $867 million missile radar deal with Saudi Arabia

Hanwha Systems Co., a leading South Korean defense company, said on Tuesday it has clinched a $867 million deal to supply its advanced mobile multi-function radar (MFR) system to Saudi Arabia.

The deal is part of a larger 4.27 trillion won ($3.1 billion) contract sealed in February between a LIG Nex1 Co.-led Korean consortium and Saudi Arabia for the export of a mid-range surface-to-air missile (M-SAM) system known as Cheongung II.

MFR will be supplied to Riyadh for use in the Cheongung II missile system.

The deal’s value is tantamount to 49% of Hanwha Systems' 2023 consolidated sales.

The latest deal follows Hanwha’s 1.3 trillion won ($940 million) contract to supply MFR for Cheongung II to the United Arab Emirates in 2022.

The UAE was the LIG-led consortium’s first overseas customer of the M-SAM system, or Cheongung, meaning heaven’s bow in Korean.

ADAPTED FOR USE IN SAUDI ARABIA

MFR, the core part of the Cheongung II missile system, is a highly advanced radar that can simultaneously detect, track and intercept not only enemy fighters but also ballistic missiles approaching from all directions.

It integrates multiple functions, such as detection, tracking, electronic warfare and missile guidance, into a single system.

Hanwha jointly developed the Cheongung II MFR with the state-run Agency for Defense Development (ADD) and deployed it in Korea in 2020. The M-SAM is at the center of South Korea's missile defense strategy, designed to intercept incoming missiles and aircraft from North Korea.

Hanwha’s MFR is equipped with the AESA, or active electronically scanned array, system, which can detect and track multiple air and ground targets over a wide area.

Hanwha said its MFR, to be shipped to Saudi Arabia, will be slightly modified in consideration of the high temperatures and sand dust of the desert in the country.

“We have expanded our export items into future weapons systems using new technologies such as the AESA radar and unmanned marine systems. We will solidify our position as a world defense system leader,” said Hanwha Systems Chief Executive Eoh Sung-chul.

HEAVEN’S BOW

LIG Nex1 is the main contractor of the Cheongung II air defense system, which it jointly developed with other Korean companies such as Hanwha Systems and Kia Corp.

The team’s first M-SAM system, Cheongung I, was deployed by the Korean Army in 2015. Cheongung II, an upgraded version, boasts improved maneuverability with a “hit-to-kill” capability against ballistic missiles.

A battery consists of Hanwha’s MFR, a command post vehicle made by Kia, and typically four launchers, each carrying eight vertically launched missiles in canisters.

The system is designed to intercept targets at a range of 40 kilometers and an altitude of up to 15 kilometers.

Write to Woo-Sub Kim at duter@hankyung.com

In-Soo Nam edited this article.