Hyundai Rotem to acquire Hyundai Wia’s defense business for $262M

Hyundai Rotem, a defense affiliate of Hyundai Motor Group, said Monday it will acquire Hyundai Wia's defense business for 358.4 billion won ($252 million) to strengthen its weapons production capabilities.

Hyundai Rotem said in a regulatory filing that it plans to acquire Hyundai Wia's defense business, which manufactures key components for Korea's K9 self-propelled howitzers and K2 main battle tanks.

The acquisition is expected to boost Hyundai Rotem's competitiveness in the global market by bringing more of its weapons production capabilities in-house, particularly for its flagship K2 tanks.

In August of last year, the company signed a $6.5 billion follow-up contract to supply K2 tanks to Poland. Five months later, it reached a comprehensive agreement with Peru to supply 195 ground weapons systems, including 54 K2 tanks.

For Hyundai Wia, the sale is part of broader restructuring efforts to shift its focus toward future mobility technologies, including vehicle electrification and software-defined vehicles.

The company plans to use the proceeds from the sale to invest in new growth areas, including constant velocity joints, thermal management systems and robotics.

The deal reflects Hyundai Motor Group's efforts to streamline its businesses, allowing Hyundai Rotem to focus on defense manufacturing while Hyundai Wia concentrates on next-generation automotive technologies.

Yonhap