Hyundai Rotem acquires Wia's defense biz as group reorganizes portfolio

Hyundai Rotem, a Hyundai Motor Group affiliate that manufactures the K2 battle tank, will acquire the defense business unit of fellow affiliate Hyundai Wia for 358.4 billion won ($252 million), as their parent Hyundai Motor Group seeks to strengthen its competitiveness by consolidating its defense operations. According to the two companies’ regulatory filings, Hyundai Rotem will acquire Hyundai Wia's defense business, which manufactures main gun barrels for battle tanks and self-propelled howitzers. The two sides signed the contract on Monday and plans to close the deal by March 31. Hyundai Rotem’s main businesses include railway vehicles, such as trains and trams, and weapons systems for land, naval and air operations. Hyundai Wia manufactures engines, modules and gun barrels, supplying the barrels for both Hyundai Rotem’s K2 battle tanks and K9 self-propelled howitzers produced by Hanwha Aerospace. The acquisition will allow Hyundai Rotem to manufacture both complete K2 battle tanks and their main guns, reducing manufacturing costs and improving supply chain management efficienc