Hanwha Aerospace Co., a Hanwha Group subsidiary that builds missiles, radars and combat‑aircraft components, is negotiating weapons contracts with Germany, the UK and other European states. The firm hopes to ride a surge in global arms spending sparked by the wars in Ukraine and the Middle East, expanding its export volumes into Western markets.

European governments have accelerated defence budgets, turning geopolitical tension into sizable procurement programmes. For Hanwha, deals in Germany and the UK give a foothold in supply chains and reduce reliance on Asian customers. Rivals such as Lockheed Martin and BAE Systems are also courting same budgets, intensifying pricing pressure. Analysts view the move as a catalyst for revenue growth, lifting the conglomerate’s order backlog substantially.

If the talks become contracts, Hanwha could add several hundred million dollars to annual sales, reshaping its exposure to European defence spending. The pursuit shows Asian arms makers recalibrating to capture market share amid heightened demand, positioning the company for measurable earnings impact this fiscal year. The deals would also diversify Hanwha’s revenue mix, lessening exposure to volatile Asian markets.