Signs term sheet with Edge Group

Yang Ki-won (left), chief executive of Hanwha Systems, and Hamad Al Marar, CEO of Edge Group, pose for a photo at the signing ceremony. [Hanwha Systems]
Yang Ki-won (left), chief executive of Hanwha Systems, and Hamad Al Marar, CEO of Edge Group, pose for a photo at the signing ceremony. [Hanwha Systems]

Hanwha Systems said Thursday it signed a term sheet with UAE defense conglomerate Edge Group in Abu Dhabi on Wednesday (local time) to cooperate on building an integrated air defense network in the UAE.

The agreement sets out the direction for introducing weapons systems and lays out a phased review process for the joint air defense network project.

Hanwha and Edge Group plan to flesh out detailed project plans in stages, in line with the two governments' defense cooperation framework. The companies will work through the necessary government approvals and consultations before exploring the establishment of a local joint venture, as well as production and operational arrangements. Localization efforts to strengthen defense manufacturing and maintenance capabilities within the UAE will also proceed in phases.

Hanwha has previously supplied components for the Cheongung-II medium-range surface-to-air missile system to the Middle East market, including its multifunction radar, launchers, launch tubes and munitions. Through the strategic partnership with Edge Group, the company aims to expand its role beyond supplying individual weapons systems to participating in the broader integrated air defense network project.

The two sides also plan to link long- and medium-range surface-to-air missile systems with counter-drone systems and short-range air defense capabilities, with the goal of building an integrated air defense network that can lead the global air defense market alongside the UAE.

Hanwha intends to develop the UAE into a strategic hub for expanding into the Middle East and third-country markets, and will continue to identify joint business opportunities in global markets from that base.

"This term sheet signing marks a turning point as Hanwha and Edge evolve beyond a one-off weapons supply relationship into a strategic partnership that shares integrated air defense technology and industry," Hanwha Systems CEO Yang Ki-won said. "We will expand technological cooperation and localization step by step to contribute to strengthening the UAE's defense industrial base."

Edge Group CEO Hamad Al Marar said the cooperation goes beyond procuring individual weapons systems and is focused on expanding the UAE's self-reliant defense capabilities and local industrial base. "Edge Group will work with Hanwha to build a sustainable foundation for industrial cooperation," he added.

This is not the first time Hanwha and Edge Group have joined forces. Last year, Hanwha Aerospace signed a memorandum of understanding with Edge Group centered on the joint development of a smart radar AI platform.


yeongdai@heraldcorp.com