Translation result
An explosion at Hanwha Aerospace’s Daejeon plant could disrupt the company’s defense export programs.
On the 2nd, industry sources said Hanwha Aerospace halted part of production at the Daejeon facility after the Daejeon Labor Office ordered a work suspension immediately following the incident.
The suspension was issued under the Serious Accident provisions of Article 3 of the Enforcement Rules of the Industrial Safety and Health Act, which apply to incidents causing at least one death. Authorities limited the stoppage to the cleaning process where the accident occurred.
Company officials told industry contacts the cleaning step is a post-operation procedure used to wash tools that handled fuel, and they expect limited impact on manufacturing and R&D.
In December, Hanwha Aerospace secured a €300,000,000 order from Estonia for six Chunmoo launchers and three missile variants (approximately 520 billion KRW; about $321,000,000). In February, the company signed a full-package supply contract with Norway that includes 16 Chunmoo launchers, valued at $922,000,000 (about 1.3 trillion KRW).
The accident has raised concerns that production disruptions could hurt Hanwha Aerospace’s revenue and operating profit.
At year-end, the Daejeon plant reported revenue of 1,318,900,000,000 KRW (about $989,175,000), accounting for 4.94% of Hanwha Aerospace’s total sales of 26,702,900,000,000 KRW (about $20,027,175,000).
Hanwha Aerospace said it will resume production only after it determines the cause of the accident, conducts special on-site safety training and implements measures to prevent recurrence.
Most Commented