AUSTRALIAN+NEW ZEALAND DEFENCE DIRECTORY 2025 www.defence.directory THE NATION BUILD 16 A TRUSTED PARTNER FOR STRATEGIC OUTCOMES IN THE INDO-PACIFIC AUKUS is the biggest government to government agreement on military cooperation on the technology front the world has ever seen. As such, it brings together the US, UK and Australia on the AUKUS class SSN under Pillar 1 and Advanced Capabilities under Pillar 2. While Hanwha Defence Australia has a South Korean parent company that sits outside the AUKUS nations, there are still opportunities for trusted allies to support and compliment the work being done under the optimal pathway. South Korea and its industrial base has much it can bring to the table in terms of experience in working with all 3 AUKUS nations through existing bilateral channels. AUKUS nations and their companies do not have the monopoly on good ideas or good technology. With this mind, some of the lessons learned in South Korea are applicable to Australia as the government realises new priorities across long range fires and the maritime domain. Most importantly, some of the “How Not To” lessons on offer may be of benefit. This hard-won experience means that Australia can avoid some of the common traps that appear on such a journey. The areas of effort outlined under Pillar 2 are ones that align with what many advanced militaries are focusing on in their own R&D efforts and developmental programs. Until recently, there has been an understandable large focus on Pillar 1 efforts, but Hanwha Defence Australia is more interested in the evolution of the work being done under Pillar 2. Hanwha, as a company with deep technical expertise in conventional submarine design and build, can contribute to the Collins Life of Type Extension program. While this sits outside the scope of Pillar 1 it will be integral to the success of this effort. Technology transfer, IP management and security are all issues that are being ironed out. AUKUS partners also flagged that they are aligning their “defence innovation ecosystems by creating seamless opportunities for trilateral cooperation.” However, more must yet be done. The current emphasis on acquisition fails to take into account the benefits of long-term MRO work in not just Australia but the wider Indo Pacific region. We would be pleased to work with AUKUS partners in this approach for our region. Like all innovative processes, there is an element of risk that needs to be explored and accepted by all stakeholders. Is the 80% solution good enough? What does the change mean for integration and sustainment and is that important in this context? Defence budget pressures are a key issue to be considered in the AUKUS context; as highlighted by several commentators, the timeframe for budget spending in all three nations is less than ideal to deliver on what each of them needs despite increasing overall budgets and the reprioritisation of programs and spending. Industry is seeking certainty on funding and schedule so that they can deliver from a base of collaborating and likeminded nations in the region. At Hanwha Defence Australia, we strongly believe that collaboration and partnership is crucial in delivering positive outcomes for all parties. We are partnering with a number of companies to expand their horizons into international markets and Hanwha’s supply chain more generally. With this mind, we would work closely with both government and private industry to expand our support and maintenance services throughout the region. We view the emerging geostrategic situation as an opportunity to show real leadership in this area. The substantial capabilities that the Hanwha Armoured vehicle Centre of Excellence (H-ACE) brings is also aimed not just at vehicle production but MRO, R&D and as a collaboration space across domains. AUKUS is not the end of the world for non-members but it will have unintended consequences for the industrial base yet to be realised. Hanwha Defence Australia will continue to a reliable partner, ready to engage in a responsive way to evolving Defence and government needs. Dean Michie Acting Managing Director Hanwha Defence Australia
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