U.S. Army Awards Hanwha Defense USA Mobile Cannon Contract

The U.S. Army has awarded Hanwha Defense USA a contract to design and deliver prototype wheeled cannons for its Mobile Tactical Cannon (MTC) program. The agreement, valued between $233 million and $262.9 million, requires the delivery of six initial 155mm K9 Mobile Howitzer (K9MH) units, with an option for 12 additional systems.

These prototypes will undergo operational experiments and soldier testing over a four-year period to evaluate performance and reliability in combat conditions. The Army intends to determine if the K9MH can replace aging M777 towed artillery and M109A7 self-propelled howitzers in specific formations to increase lethality and mobility. Hanwha Defense USA won the award over several competitors, including BAE Systems, Rheinmetall, and Leonardo DRS.

To support the project, Hanwha Defense USA is establishing an integration and test facility in Opelika, Alabama, under a three-year lease. The company plans to invest over $2 million in the U.S. artillery supply chain, with the Alabama site expected to create approximately 40 jobs. This represents the first major U.S. Army contract for the subsidiary of South Korea's Hanwha Aerospace, whose shares rose as much as 9.5 percent following the announcement.