Hanwha in advanced conversations about weapons production for Saudi Arabia

Hanwha Aerospace Co. It is in advanced debates with Saudi Arabia on the collaboration of potential weapons, as the Middle East becomes the main focus of the company, according to the head of its world defense business.

Expansion opportunities in the region are a main reason that the largest South Korea defense contractor decided to announce aShared Sale PlanLast month to raise money, said Michael Coulter, who was appointed President of the World Defense and CEO of Hanwha at the end of last year.

“ We are in discussions in both Saudi Arabia and the Arab Emirates united right now on programs that will create capacity in the Middle East, approaching sovereignist problems and also helps to address security threats, coulter said in an interview with Bloomberg.

Hanwha has been one of the greatest beneficiaries of the global demand for the demand for terrestrial weapons after the outbreak of wars in Ukraine and the Middle East. That of the companyActions have gatheredAlmost 30 times more for the last five years, and this year is the best performance in Asia. Known for their ability to deliver weapons faster and cheaper than rivals, firm’s flagship weapons include theK9 Howitzer self -propelled.

The company’s shares dropped by 2.1%on Tuesday, while the Kospen reference changed little.

Hanwha still decides the exact way of participating in Saudi Arabia, but it may be that an agreement can be announced later this year, said Coulter, a former United States Navy officer.

“We have not yet reached the complete decision on whether it is a facility in Saudi Arabia, a joint company, or a association, or we support a Saudi defense company, so that’s the case, but the market demand is there,” he said.

Hanwha’s openings occur when Saudi Arabia invests trillions of dollars in a plan to develop non -oil economicslocate50% of its military expenditure by 2030 by virtue of the plan called Vision 2030.

Sales of Middle East weapons are a sensitive topic for South Korea, as the country seeks to balance its links with Arab states and its relations with its only Allied Treaty in the United States, which has security relations with Israel.

Controversial

Hanwha, earlier this month, reduced the size of the selling of quotas planned to 2.3 trillion earnings ($ 1.6 billion) of an original 3.6 trillion gain, after the push of investors and financial authorities. The Financial Supervisory Service has also opposed its revised plan.

The decision to reduce the offer showed “a very responsible will of a company to listen to its investors and shareholders,” said Coulter.

“Yes, there is a potential for a slight dilution in a nearby period, but look at our career, look at the market opportunity, we have traveled through where we are making the investments and performance of these investments from a business point of view,” he said.

Europa plans

Hanwha is also in conversations with various nations in Western Europe on how they can help them increase their capacity to make weapons in the face of global instability.

“We have no intention of coming and taking over and moving European partners,” said Coulter. “We are talking to the governments, but we also talk to the industry and saying where you have invested? Where have you not invested? Where can we be partners?”

Coulter said that it was optimistic that the United States and South Korea will reach an agreement that will prevent prolonged trade dispute derived from the threat of the Trump Administration of higher rates.

“We are very sure that the two governments will come to the resolution,” he said.

“There is a huge presence of the United States Army here. We have the ships of the Navy in our shipyards here in Korea. So our governments speak for it. I am optimistic prudent that will be published and will not become a political problem.”

This story originally presented to Fortune.com

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