Hyundai Rotem acquires Wia's defense biz as group reorganizes portfolio
Hyundai Rotem, a Hyundai Motor Group affiliate that manufactures the K2 battle tank, will acquire the defense business unit of fellow affiliate Hyundai Wia for 358.4 billion won ($252 million), as their parent company seeks to strengthen its competitiveness by consolidating its defense operations. According to the two companies’ regulatory filings, Hyundai Rotem will acquire Hyundai Wia's defense…
Hyundai Rotem, a Hyundai Motor Group subsidiary that manufactures the K2 battle tank, is acquiring the defense business unit of Hyundai Wia for 358.4 billion won ($252 million). This move comes as their parent company looks to bolster its competitiveness by consolidating its defense operations. According to regulatory filings, Hyundai Rotem will take over Hyundai Wia's defense business, which specializes in manufacturing main gun barrels for battle tanks and self-propelled howitzers.
The two companies signed the agreement on Monday, with plans to finalize the deal by March 31. Hyundai Rotem's primary operations include producing railway vehicles and weapons systems for land, naval, and air activities. Hyundai Wia, on the other hand, is known for producing engines, modules, and gun barrels, supplying barrels for both Hyundai Rotem's K2 battle tanks and K9 self-propelled howitzers manufactured by Hanwha Aerospace.
This acquisition will enable Hyundai Rotem to produce both complete K2 battle tanks and their main guns, leading to reduced manufacturing costs and improved supply chain management efficiency.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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