Hanwha-WB Group Joint Venture: A Strategic Partnership Reshaping European Defense Manufacturing and Poland’s Military Industrial Complex

The recent signing of a joint venture agreement between Hanwha Aerospace of South Korea and Poland’s WB Group to establish guided missile production in Poland marks a significant milestone in European defense and industrial cooperation. This partnership, formalized at the MSPO 2025 defense exhibition in Kielce, is Poland’s first major defense joint venture with a Korean company and signals a new era of technology transfer, local manufacturing, and strategic alignment between the two nations. The agreement is set to bolster Poland’s defense capabilities, create skilled jobs, and foster long-term industrial growth while addressing the evolving security needs of the NATO alliance in Eastern Europe.

With Hanwha holding a 51% stake and WB Electronics (a subsidiary of WB Group) controlling 49%, the joint venture will focus on the local production of CGR-080 guided missiles for Poland’s HOMAR-K multiple launch rocket system. This initiative is expected to generate approximately 250 skilled positions and include a phased technology transfer program, with full-scale production anticipated by the end of 2028. The collaboration stands against the backdrop of unprecedented European defense spending, with Poland leading NATO in defense investment, allocating roughly 4.7% of GDP in 2025.

The Hanwha-WB Group partnership is emblematic of broader trends in European security and industrial policy, as regional actors seek greater self-reliance and resilience in response to geopolitical tensions, particularly following Russia’s invasion of Ukraine. It also highlights the increasing importance of cross-border partnerships and technology sharing in strengthening the European defense industrial base.

Background and Context of Korea-Poland Defense Cooperation

The foundation for the Hanwha-WB Group joint venture was laid by a sweeping $44.2 billion defense framework agreement between South Korea and Poland in 2022. This framework went beyond traditional arms procurement, emphasizing technology transfer, local production, and sustained industrial cooperation. It covered a range of defense hardware, including K2 main battle tanks, K9 self-propelled howitzers, K239 rocket artillery, and FA-50 light combat aircraft, positioning South Korea as a key partner in Poland’s military modernization.

The strategic alignment between Poland and South Korea is rooted in shared historical experiences and a mutual understanding of the need for robust defense capabilities. Both countries have faced foreign invasions and emerged as resilient democracies, fostering a sense of partnership that Hanwha Aerospace CEO Jaeil Son has described as being based on “similar historical experiences.” This shared perspective became especially relevant after the 2022 invasion of Ukraine, which prompted a reevaluation of defense priorities across Europe.

Poland’s rapid increase in defense spending, from 2.7% of GDP in 2022 to a projected 4.7% in 2025, demonstrates its commitment to regional security leadership. This surge in investment has created opportunities for partnerships that offer not just hardware, but also long-term industrial development and technology sharing. South Korea’s willingness to engage in such arrangements, often more flexibly than traditional Western suppliers, made it an attractive partner for Poland’s defense ambitions.

Strategic Partnership Formation and Key Agreement Details

The formal announcement of the joint venture took place on September 2, 2025, at the MSPO defense exhibition, with top executives and government officials from both countries in attendance. Hanwha Aerospace holds a 51% majority in the venture, while WB Electronics retains a 49% stake, reflecting a balance of technological input and local expertise. The agreement is compliant with both Polish procurement laws and South Korean export controls and is structured to supply allied European nations as well.

This collaboration builds on prior memoranda and executive agreements between the two companies, including a 2024 understanding to jointly produce the 239mm CGR-080 guided rockets in Poland. The deal includes a phased technology transfer, a certified quality management system, and structured workforce training, all aimed at building a sustainable, high-quality production capability within Poland.

WB Group President Piotr Wojciechowski has described the investment as “unprecedented for Poland,” emphasizing its role in enhancing national security and establishing domestic production of critical munitions. The agreement also allows for future development of new guided rockets to meet evolving defense needs.

“This missile plant is a significant, first-of-its-kind investment in Poland with the primary objective to enhance national security by ensuring domestic production of critical munitions.”

, Piotr Wojciechowski, WB Group President

Technical Specifications and Capabilities of the CGR-080 System

The CGR-080 guided missile is a precision-strike weapon with a range of 30 to 80 kilometers and a circular error probability (CEP) of 15 meters. Utilizing GPS/INS guidance, it is designed for high accuracy against various targets, including personnel, light armor, and infrastructure. This precision minimizes collateral damage, a key consideration in modern military operations.

The missile’s warhead is engineered to neutralize diverse threats, from lightly armored vehicles to fortified positions. Compared to the U.S. HIMARS system, which uses the M31 GMLRS rocket with a range of up to 70 kilometers, the CGR-080 offers a slight range advantage. Both systems use GPS guidance for accuracy, with the HOMAR-K system achieving a CEP of 15 meters.

The HOMAR-K launcher, based on the South Korean K239 Chunmoo system, is highly modular, capable of firing a variety of munitions including the CTM-MR (50–160 km range) and CTM-290 (up to 290 km range) missiles, as well as guided anti-ship missiles. This versatility enables the Polish military to tailor its arsenal to specific operational needs.

Economic and Industrial Impact

The economic impact of the Hanwha-WB Group joint venture is multifaceted. The immediate creation of approximately 250 skilled jobs is just one aspect; the broader benefits include technology transfer, supply chain development, and the establishment of Poland as a regional hub for advanced defense manufacturing. According to WB Group, the factory will increase Poland’s independence in ammunition production and foster industrial growth.

Poland’s defense budget for 2025 is projected at 186.6 billion zlotys (around $45 billion), the highest among NATO countries by GDP percentage. This robust budget supports the joint venture and other major defense procurement programs, such as the acquisition of 290 Homar-K launchers and thousands of munitions, valued at $3.55 billion. The technology transfer component ensures that domestic capabilities are developed alongside procurement.

For Hanwha Aerospace, the joint venture is part of a broader international expansion strategy. The company’s 2024 sales reached 11.24 trillion won ($7.7 billion), driven by global demand for its defense systems. WB Group, meanwhile, saw its revenues soar to $700 million in 2024, a 75% increase from the previous year, reflecting its growing role as a supplier of battlefield management and communications systems.

“This joint venture will localize CGR-080 manufacturing, transfer critical know-how, and co-develop next-generation munitions with our Polish partners, a commitment of investment, people, and technology in Poland, for a safer Europe.”

, Jaeil Son, Hanwha Aerospace CEO

Geopolitical and Security Implications

The joint venture is strategically significant for both Poland and the broader NATO alliance. Poland’s position as the leading defense spender in NATO reflects its commitment to regional security and its role as a bulwark on the alliance’s eastern flank. The partnership with Hanwha enhances Poland’s self-reliance by ensuring domestic production of critical munitions and reducing dependence on external suppliers.

This move comes amid a broader European rearmament in response to heightened threat perceptions after the Ukraine invasion. The partnership diversifies Poland’s defense relationships beyond traditional allies like the United States, while maintaining interoperability with NATO systems. Such diversification provides access to advanced technologies and competitive pricing not always available from Western suppliers.

The joint venture’s compliance with both Polish and South Korean regulations positions it as a model for other European nations seeking similar arrangements. Its export potential to other NATO allies could further strengthen alliance capabilities and promote burden-sharing.

Market Context and Industry Trends

The European missiles and missile defense systems market is projected to grow from $3.98 billion in 2025 to $5.06 billion by 2030, driven by increased defense spending and evolving security challenges. Short-range missiles like the CGR-080 are expected to dominate the market, aligning the joint venture’s products with prevailing demand.

Established players such as MBDA, Saab AB, and Lockheed Martin have traditionally dominated the European market, but there is a growing trend toward international collaboration and joint ventures to accelerate technology sharing and production. The Hanwha-WB Group partnership exemplifies this shift, positioning Poland as a regional hub for advanced missile systems.

Globally, the defense market is forecast to grow at an annual rate of over 8% through 2035, with South Korea emerging as a major exporter. Hanwha’s order backlog and ongoing investments in research and development underscore the long-term potential of this partnership for both domestic and export markets.

Expert Analysis and Future Outlook

Industry leaders and policymakers have highlighted the strategic importance of the Hanwha-WB Group joint venture. For Hanwha Aerospace, the agreement is a key step in global expansion and technology localization, while for WB Group, it represents a transformative investment in Poland’s defense industry. The phased approach to technology transfer and workforce development is expected to yield sustainable benefits over time.

Looking ahead, the partnership is poised to serve as a template for similar arrangements across Europe. The facility will not only supply Polish forces but could also export to other NATO allies, strengthening regional security and industrial resilience. Provisions for co-developing next-generation munitions indicate a commitment to ongoing innovation and capability enhancement.

“We are becoming increasingly self-reliant in defense manufacturing. We are not only buying weapons, we’re bringing their production to Poland.”

, Władysław Kosiniak-Kamysz, Polish Deputy Prime Minister and Minister of National Defence

Conclusion

The Hanwha-WB Group joint venture for guided missile production is a landmark in European defense and industrial policy. It combines immediate security benefits with long-term technology transfer and industrial development, serving as a model for future partnerships. The technical capabilities of the CGR-080 system, coupled with the modularity of the HOMAR-K platform, provide Poland and its allies with advanced precision-strike options tailored to contemporary security challenges.

As defense spending and modernization accelerate across Europe, the success of this partnership will be measured by its ability to deliver both operational capabilities and sustainable industrial growth. Its emphasis on local production, export potential, and ongoing innovation positions Poland as a leader in the European defense landscape, while strengthening the broader NATO alliance in an era of evolving threats and strategic uncertainty.

FAQ

What is the main purpose of the Hanwha-WB Group joint venture in Poland?
The main purpose is to locally produce CGR-080 guided missiles for Poland’s HOMAR-K rocket system, enhance national security, and foster long-term industrial growth through technology transfer and workforce development.

How many jobs will the new missile production facility create?
The joint venture is expected to create around 250 skilled positions in Poland.

What is the range and accuracy of the CGR-080 missile?
The CGR-080 has a range of 30–80 kilometers and a circular error probability (CEP) of 15 meters, offering high precision for a variety of target types.

How does this partnership affect Poland’s role in NATO?
By increasing its defense manufacturing self-reliance and leading NATO in defense spending, Poland strengthens its position as a regional security leader and key alliance member.

Will the missiles produced be available for export?
Yes, the joint venture is structured to allow export to other allied European nations, subject to regulatory compliance.

Sources

• Hanwha Official Press Release