(Photo/Hanwha Defense USA)
ANALYSIS
By Troy Turner
OPELIKA, Alabama – South Korea and Alabama already have strong economic connections, established years ago when Korean automobile makers discovered the state and its capable — and affordable — workforce.
It is the suddenly rapid growth of the Asian nation’s defense industry interests here, however, that may soon make the 7,000-plus miles and world’s largest ocean between the two statehoods seem much less of a separation, thanks to a pair of eye-catching recent headlines.
IT’S A BIG GUN
First came the news that the U.S. Army has selected South Korea’s Hanwha Defense USA, headquartered in Virginia, for the development of prototypes in the Mobile Tactical Cannon program, which is a mobile artillery gun and a critical priority in the Army’s modernization efforts.
(Photo/Hanwha)
The almost $263 million deal provides for the accelerated delivery of six prototypes, with an option for an additional 12. The company’s soon-to-be-expanded Opelika location will serve as the U.S. integration and test facility in preparing the artillery pieces for delivery to the Army.
That, however, could end up being chump change.
If the Army likes the prototypes, and should it in the future decide it wants the gun in large-scale quantities, and IF the Opelika site remains the primary production facility for what Hanwha refers to as the K9 Mobile Howitzer, there are estimates in South Korean reports that place a potential future deal worth more than $7 billion.
“We’re focused on creating a U.S.-anchored K9 Mobile Howitzer manufacturing network — with Opelika, Alabama, as the current Phase I launch point — that can deliver advanced Mobile Tactical Cannons at the speed and scale the U.S. Army needs,” said Jason Pak, Hanwha’s head of Land Systems-Artillery.
Hanwha first came to Opelika in 2005, producing automotive parts. During 2021, Hanwha Cimarron LLC announced a $130 million high-pressure carbon fiber tank manufacturing facility in the Northeast Opelika Industrial Park.
Hanwha Defense USA established its presence earlier this year.
WHY OPELIKA MATTERS
Opelika is in the eastern portion of Alabama, with a steady flow of workers since the early 2000s commuting to jobs locally, to Montgomery, and to just across the state line in Georgia.
The news that Hanwha, Opelika and the U.S. Army are all in a new partnership together is tied to that workforce, to established relationships, and to a large collection of suppliers that have located here; but perhaps even more so to Opelika’s geographic location — namely, its proximity to one of the Army’s most important military installations: Fort Benning, Georgia.
Fort Benning has a long history with the Army’s infantry, artillery, armor and special forces training, and it exists a mere 38 miles away.
Closer to home, Opelika is next door to Auburn University, which in itself has become one of the military’s largest academic partners in research and development issues ranging from complex space and missile defense efforts, to land management and consultation concerning the Army’s massive real estate holdings across the nation.
And, Opelika has a rich history dating back to the Civil War that continues today with its railroad significance, something extremely important to manufacturers that develop large, heavy equipment… such as mobile howitzers.
Former Opelika Mayor Gary Fuller attended a 2024 event welcoming the F-35 fighter jet to Alabama Air National Guard’s 187th Fighter Wing in Montgomery. He was representing the city’s interests in defense industry. (Photo/AlaDefense.com)
Thus, Opelika – and Alabama — have much to offer for a defense giant looking to grow its U.S. military portfolio.
Industry leaders in South Korea noticed.
WE BUILD SHIPS, TOO
Then last week came another big headline; even bigger than Opelika making modern artillery pieces.
South Korea’s Hanwha Group, through its Hanwha Defense USA, has submitted a preliminary, non-binding offer valued between $1.05 billion and $1.2 billion to acquire 100 percent of Mobile-based shipbuilder Austal USA.
(Photo/Austal USA)
Such a deal, if successfully completed, could have a major impact on many things concerning Alabama.
For one, South Korea already is a hot potato topic for those arguing whether that nation should help the United States build new ships for the U.S. Navy.
South Korea builds ships. The U.S. builds them too, but at a much slower pace and is far behind what it needs to meet today’s demands and threats from other maritime powers such as China.
Austal USA, under its Australian parent company Austal, has operated in troubled waters for quite some time, facing a wide range of leadership changes, performance problems and financial misgivings. Yet, it remains one of Alabama’s largest defense industry producers, creating thousands of jobs and important influence for the Port of Mobile’s role in supplying vessels to the U.S. Navy and Coast Guard.
Another factor no doubt being considered by Hanwha is how such a footprint in Mobile could go far beyond the port city, literally, as it would open more doors for the movement of the company’s massive, all-encompassing and far-reaching supply chain operations.
Far-reaching, but perhaps none being more important to future operations than that created within the state if the Army ends up spending billions in buying the K9 gun. Think about how busy the commercial transportation corridors could become, such as one connecting South Korea-Mobile-Montgomery-Opelika-Fort Benning.
Such a corridor would include ships, planes, trains and trucks.
You can rest assured Hanwha is thinking about it. Alabama should be too.
Buying Austal USA, even with a billion-dollar price tag, could end up making business sense for Hanwha on several of its profitable organizational levels, from shipbuilding to supply chain to manufacturing support.
All of that, obviously, would in turn make South Korea quite the business partner for Alabama.
ALREADY A CULTURAL IMPACT
Already in Opelika, Auburn and Montgomery, there are signs of cultural exchanges that include Korean-inclusion church services, Korean restaurants and advertisements targeting Korean customers.
A youth soccer coach in Auburn last week was looking for interpreters to help her coach her team, as there are five players who can’t speak English yet; three speak Spanish, and two Korean.
The Army is only ordering prototype artillery guns at this point, and Austal USA for now remains an Australia-affiliated shipbuilder in Mobile.
When and if the possibilities of change involving those two headline makers move from could-be to will-be, Alabama and South Korea both have much to gain from each other in what already is a significant business relationship.
The financial and economic impact for Alabama would be substantial, injecting billions of dollars into capital investment, securing thousands of skilled manufacturing jobs, and establishing the state as a premier dual hub for both U.S. naval shipbuilding and advanced land artillery.
Stay tuned. More headlines are sure to come.
Troy Turner is the editor and senior consultant for AlaDefense.com. He can be reached at [email protected]. His bio can be found here.
SIDEBAR:
Major South Korean automaker and key suppliers in Alabama
- Hyundai Motor Manufacturing Alabama (Montgomery): Assembled vehicles since 2005.
- Hyundai Mobis (McCalla / Montgomery): Operates major modules and parts assembly operations supporting Hyundai since the early 2000s.
- Seohan Group / Kamtec Auto USA (Auburn): Maintained an operational presence in Auburn since 2007, expanding with newer hybrid/EV component facilities.
- Shinhwa Auto USA (Auburn): Manufacturing aluminum die-cast parts in Auburn since 2019.
- Samkee America (Tuskegee): Opened its major aluminum component and EV parts manufacturing plant in 2024.
- Samkwang (Tuskegee): Established an auto-supplier plant in Macon County starting in 2025 to supply both Hyundai and nearby Kia lines.
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