Meet the Latest News from Hanwha Corporation.
- enters into a 5 year-term contract with Whitehaven Coal Limited for
explosives supply and services
Hanwha Corporation entered into a contract with Whitehaven Coal Limited (ASX: WHC) to supply all bulk and initiating explosives and down-the-hole services. The contract, announced on 7th December, is for a term of five years and includes supply of approximately 65,000 tons per year of bulk explosives.
Whitehaven was one of the customers that LDE Australia was supplying when Hanwha took over the private mining services firm in August 2015. The recent extension of this contract demonstrates that since the acquisition, Hanwha has proved its excellence in operational performance and blast efficiency. The agreement marks a milestone for Hanwha’s global ambition as a mining services company.
Yang-soo Choi, CEO of Hanwha Corporation said that this deal gave Hanwha an important foothold that would allow them to grow and expand the reach of their global mining services. He also stressed that Hanwha was committed to providing safer and higher-quality bulk explosives and detonators to various markets around the globe.
The hybrid bulk explosives currently supplied by Hanwha in Australia are drawing industry attention as they generate little undesired fume and deliver efficient blast results. Hanwha offer a solution to mining companies to help address these well-monitored environmental issues.
A trial in fume reduction using Hanwha’s hybrid bulk explosives was also presented at the 9th AusIMM Open Pit Operators Conference 2016 last month and this attracted interest from mine operators.
Hanwha’s contract renewal with Whitehaven Coal will allow the mining services firm to invest in more advanced systems and manufacturing facilities in Australia with a view to enhancing the quality of existing products and developing new ones.
This will help Hanwha gain a wider global footprint in mining services. Since the commencement in 2014 of its global mining services business, the company has made inroads into Australia, Indonesia.
- Showing competency as ‘global defense solution provider’ at the first combined exhibition stand
- Introducing advanced technologies to overseas customer
- Marketing new businesses in Korea
The four defense units of Hanwha Group – Hanwha Corporation (CEO: Taejong Lee), Hanwha Techwin/Hanwha Defense Systems (CEO: Hyunwoo Shin) and Hanwha Thales (CEO: Sikweon Chang) – are participating in Defense Expo Korea 2016 (“DX Korea”) which will be held from September 7th to 10th at KINTEX, Ilsan, to present their integrated competence in the defense industry.
DX Korea 2016, held for the second time round, is Korea’s biggest exhibition of army weapons, hosted by the Association of the Republic of Korea Army, and the four defense units of Hanwha have prepared a combined exhibition stand for the first time to present their dynamic weapon systems and introduce their competence in the defense industry.
Especially at this show, the weapon systems will be presented for the audience to explore the synergy among the four defense units. For Chunmoo (MRLS – multiple rocket launching system), Hanwha Corporation is in charge of the system integration, and Hanwha Defense Systems is responsible for development and operation of the launcher. For L-SAM (Long range Surface to Air Missile), which is currently under development, Hanwha Corporation is also responsible for the system integration, and Hanwha Thales is responsible for the radar and Hanwha Defense Systems for the launcher. Its scale model will be displayed for the first time at the show.
“This show is very meaningful as we are presenting a combined exhibition stand for the first time since the four defense units were formed,” said Taejong Lee, CEO of Hanwha Corporation, “we will enhance the image of Hanwha as an “integrated defense solution provider”through this show and will promote a new domestic business as well as implement active marketing strategy with global enterprises.”
■ Introducing Core Competencies (Firepower, Maneuver, Aeroengines, etc.)
There will be four sections at Hanwha’s exhibition hall, divided according to different business fields including firepower, maneuver, air defense and surveillance and reconnaissance. There will also be a core component section for aeroengines and navigation systems. For Chunmoo, K9 (self-propelled howitzer), hybrid variant of the self propelled air defense gun carrier K30 Bi-Ho (flying tiger in Korean) integrated with indigenously developed Shingung guided missiles and armoured vehicles, there will be life-sized displays which are expected to attract the audience’s attention.
At the firepower section, Chunmoo, a 230mm-class MRLS which was developed by Hanwha Corporation, and Chungum, an air-to-surface guided missile for LAH will be displayed. Chungum, which is a development project acquired by Hanwha Corporation in December 2015, is a weapon system to pinpoint-strike the enemy’s tank’s like the “Hellfire Missiles” in the US. It is Korea’s first guided weapon for manned vehicle platforms, and the production will begin from 2023 once its development is completed in 2022.
Hanwha Techwin will present K9 self-propelled howitzer and K10 ammunition carrier at the firepower section. K9 is being actively promoted in the region of Europe, Asia and the Middle East. They especially seek to expand their business territory into the European market which is the region for advanced countries in the defense industry.
Hanwha Defense Systems, which has newly become one of the units of Hanwha Group in May 2016, will display a life-sized hybrid variant of the self propelled air defense gun carrier K30 Bi-Ho (flying tiger in Korean) integrated with indigenously developed Shingung guided missiles. And the armoured vehicle, Black Fox 8x8. K21 and the armoured vehicle, Black Fox 6x6 and 4x4 will have its mock-up displayed. hybrid variant of the self propelled air defense gun carrier K30 Bi-Ho (flying tiger in Korean) is Korea’s first multi-antiaircraft weapon where it is loaded on the existing gun carrier, K30 Bi-Ho (flying tiger in Korean), and the user can choose to fire different type of missiles, either bombs or guided missiles depending on the target range. K30 Bi-Ho (flying tiger in Korean) is designed to maximize the strengths of both types of the missiles; the advantage of guided missile is that it has a longer effective range compared to the antiaircraft gun, and the advantage of the antiaircraft gun is its shorter reaction time.
At the surveillance and reconnaissance section, Hanwha Systems will focus on the products related to surveillance & reconnaissance, and command, control & communication (C3) fields such as radar, electronic optics, combat systems and satellites. These products perform as a brain and a sensory organ of the military weapon systems. Hanwha Systems, having developed multifunctional radar for the first time in Korea and succeeding in its electrification, will especially present long/short distance radar, a thermal imager (TAS-815K) and many others to show their technological competence that has been developed for over 30 years in the field of radar.
At the core component section, Hanwha Techwin’s F404 engine and KUH T700 engine will be displayed. F404 engine is GE’s representative engine which is applied on F/A-18, the main fighter jet of the US navy, and it was selected as the engine of T-50 which is Korea’s first advanced jet trainer. Hanwha Techwin has produced the engine since 2005 and supplied around 200 units each to T-50 and FA-50.
■ Implementing global join marketing strategy with overseas enterprises
The military officials of chief-of-staff-level from eleven countries including Poland and Finland, and those of general-level from fifteen countries including the US, Turkey and Indonesia will attend this show. Hanwha will actively involve in joint global marketing accordingly.
Hanwha Corporation will present K-BATS (Korean ballistic aerial target system) which is based on the technology of precision guided missile. It was also introduced at Eurosatory, the world’s biggest weapon exhibition, in June, 2016, in France. Hanwha Corporation is planning to promote their guided weapons and technological competence in complete ammunition in order to expand their business territory further in the global market.
Hanwha Techwin’s K9 self-propelled howitzer has already got an excellent sales records in abroad, thus it is likely to receive a great amount of attention from the foreign military officials at this show. They have signed a $310 million worth of contract for the export of K9 body.
Hanwha Systems will display Thermal Observation Device(TAS-815K) which has brilliantly performed its role as a surveillance system set up at the 11th Asia-Europe Meeting (ASEM) in Mongolia in July, to draw the attention of audience.
Hanwha Defense Systems, participating in the integrated exhibition for the first time, will set its existing armoured vehicle, K21, and a gun turret-loaded newable light tank(gun turret from a Belgium company, CMI) at the head of its export, considering the fact that there exists more demands of light tank’s where it can be tactically applied in various situations, as well as its relatively competitive price compared to other medium tank’s in the global market.
Hanwha Corporation, Korea’s leading industrial explosives manufacturer that aspires to become a global mining services player, is taking over 100% of shares of LDE1) Corporation Australia and its US entity, LDE Corporation USA, for KRW39 billion or A$45.3 million.
Hanwha Corporation signed the Share Sale Agreement on August 11th with Kevin Waldock, Managing Director of LDE Corporation to purchase 100% shares of the Australian business for KRW25 billion. The company also plans to take over LDE Corporation USA for KRW14 billion around October, which requires the buyer to go through local regulatory processes.
Established in 1996 in Queensland, Australia, LDE Corporation has an annual manufacturing capacity of 200,000 tons of emulsion explosives2), providing mining services3) to global miners in Australia and the US while producing various types of industrial explosives.
The acquisition is expected to boost Hanwha’s overseas sales. In 2014, LDE Corporation posted A$44 million in Australia and A$12 million in the US, totaling A$56 million (KRW48 billion). LDE secured a new customer in late 2014 that will jumpstart dramatic growth from 2015 onwards.
Hanwha also expects to see synergies created in its global mining services business from the LDE takeover. Currently providing mining services in Indonesia, Australia and Latin America, Hanwha has gained a foothold with this acquisition for a deeper entry into the Australian market based on its time-tested explosives technology and LDE’s proven quality and price competitiveness.
In addition, Hanwha is planning to demonstrate its business capability and experience by providing major global mining houses with a full range of mining services for their mine sites in Australia and the US. Hanwha Mining Services, Hanwha’s international business unit, has already registered businesses in Indonesia, Chile, Peru, Singapore and Australia. The company is also driving strong sales activities to win contracts from large miners that prefer sizable suppliers by capitalizing on its brand power as one of the Fortune Global 500 companies (329th in the 2015 ranking).
Hanwha has an optimistic outlook on the global mining services market. Whereas the Korean industrial explosives market has little room for further growth, overseas explosives markets are seeing a constant rise in development demand as Southeast Asia and Latin America are becoming increasingly urbanized with growing populations. On top of that, changing environments in mining are expected to lead to bigger demand for explosives and keep the mining services market on a sound growth trajectory.
Yang-soo Choi, President and CEO of Hanwha Corporation/Explosives, said “As the mother company of Hanwha Group, Hanwha Corporation’s growth has gone hand in hand with the development of the Korean economy. Hanwha was the first Korean company to produce dynamite explosives with local technology in 1957 and ever since then, the company has supplied various industries of Korea with safe, high-quality explosives and initiating systems. I am confident that our proven technology and reputation as a reliable supplier will allow us to become a global player in industrial explosives and mining services. We are committed to fulfilling our corporate social responsibility by bringing a new future to Korea and the society with explosives and initiating systems of excellent quality.”