Sweden Turns to South Korea’s Hanwha for Advanced Archer Artillery AmmunitionBy Nordic Business Journal Defense Correspondent

STOCKHOLM – In a move reflecting both strategic foresight and shifting defence supply priorities, Sweden has placed a $110 million order with South Korea’s Hanwha Aerospace for advanced ammunition systems for its Archer 155mm artillery howitzers. The deal marks a new phase in Sweden’s ongoing modernization of its artillery capabilities and underscores growing Nordic-Asian defence links. ​

A $110 Million Boost for Sweden’s Artillery

Signed at the AUSA 2025 defence exhibition in Washington, D.C., the three-year framework agreement between Hanwha Aerospace and the Swedish Defence Materiel Administration (FMV) covers deliveries of modular charge systems (MCS) certified to NATO standards. The MCS systems will supply Sweden’s BAE Systems–built Archer L/52 mobile howitzers, a key component of Nordic artillery deterrence. ​

Hanwha’s MCS propellant technology allows operators to tailor propellant loads for specific ranges and firing conditions, improving both flexibility and accuracy in field operations. FMV officials confirmed the first deliveries will begin in 2026, strengthening Sweden’s short-term readiness as European industry grapples with powder shortages. ​

Jonas Lotsne, head of FMV’s Army Materiel Division, commented that the agreement with Hanwha “is an important step in securing propellant supplies while we continue investments to expand Nordic ammunition capacity.” His statement aligns with the government’s broader strategy to diversify suppliers following major July 2025 artillery ammunition contracts with Rheinmetall Denel Munition and Nammo worth over SEK 5 billion. ​

Archer Artillery Ammunition | Ganileys

South Korean Expansion in Northern Europe

For Hanwha Aerospace, the deal represents both continuity and expansion. It is the company’s second MCS contract with Sweden after an initial successful delivery in 2024. Billy Boo-Hwan Lee, head of Hanwha’s Precision Guided Munitions division, emphasized that the contract “reflects the deep trust achieved through cooperation with Sweden and the company’s commitment to supporting Nordic defence capabilities.” ​

Hanwha intends to use this partnership to further its presence in Northern Europe, with upcoming proposals to Norway and potential offers including the K9 Thunder self-propelled gun and the Chunmoo multiple rocket launcher system. ​

Nordic Ammunition Strategy and NATO Integration

Sweden’s decision to bring in a South Korean partner reflects a pragmatic shift within Europe’s defence ecosystem. As demand for artillery rounds and propellants surges—driven by the Ukraine war—NATO members are broadening supply chains to ensure continuous field readiness. ​

For the Nordic region, this cooperation blends external sourcing with ongoing EU- and FMV-backed initiatives to boost local production through Nammo’s facilities in Sweden and Norway. Defence Minister Pål Jonson previously described the broader munitions renewal as “the largest investment in this sector since the 1980s,” aiming to secure both national stockpiles and regional interoperability across NATO. ​

Strengthened Strategic Outlook

With growing geopolitical tensions and NATO integration underway, Sweden’s partnership with Hanwha Aerospace stands out as both a tactical procurement and a signal of adaptive industrial policy. The mix of domestic, European, and Asian defence suppliers positions Stockholm to meet rising operational demands while reinforcing Nordic defence autonomy.

The Archer howitzer, combined with the new modular charge system, will now serve as one of Northern Europe’s most advanced and adaptable artillery platforms—linking Swedish engineering with South Korean innovation in the evolving security landscape. ​

The Nordic Business Journal provides independent economic and business analysis across the Nordic region. For daily updates and in-depth reports, visit nordicbusinessjournal.com. In collaboration with Ganiley Solutions, you’ll find our insights into Nordic business practices aim to help companies in the region and worldwide adopt better work environments that foster both employee satisfaction and long-term success.

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