South Korea's Hanwha wins $3.4bn-plus Australia defense contract

SEOUL -- South Korean defense equipment giant Hanwha Aerospace has been selected as the preferred bidder to supply armored vehicles to Australia, as Seoul raises its profile in the field of arms exports amid Russia's invasion of Ukraine.

Hanwha intends to supply 129 Redback armored vehicles, to be produced in Australia, between 2027 and 2028 in a deal that includes technical assistance. The contract, which has yet to be finalized, will range from 5 billion to 7 billion Australian dollars ($3.36 billion to $4.71 billion), the Australian government said. Hanwha beat Germany's Rheinmetall to be named the preferred bidder.

The Redback, named for a spider native to Australia, was developed by Hanwha at the request of Australia's military. It can carry up to 11 people and reach a speed of 65 kilometers per hour. Equipped with a 30 mm main gun and machine gun, its role is to transport soldiers safely on the battlefield.