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The global market is fragmented due to the conflict between the USA and China and the war between Russia and Ukraine. The US Inflation Reduction Act (IRA) spread protectionism in every country. China, Korea’s largest export country, can close the door at any time. We look at the challenges faced by Korean companies entering new markets rather than establishing themselves in existing markets. [편집자 주]
On November 29 last year, while driving about 50 km east of Warsaw, the capital of Poland, I came across the Minsk air base. Guards armed with machine guns guarded the entrance. Upon entering the base, an FA-50 fighter aircraft with “5010” inscribed on the tail wing flew to the runway for a flight test. A large hangar on one side of the base housed the Korea Aerospace Industries (KAI) center, which reassembled the FA-50.
Kai, FA-50 engine and performance test site / Reporter Park Seong-woo
Entering the hangar with the Korean national flag hanging on the wall, two FA-50 fighter jets (No. 11 and No. 12), 13.14 meters wide and 4.94 meters high, presented a majestic sight. About ten workers worked under Unit 11 and on the wings, working on the engine and wing connection.
Poland signed a contract with KAI in September 2022 to purchase a total of 48 FA-50 multi-role fighters (approximately 4.1 trillion won). Of these, 12 (FA-50) were scheduled to be delivered by the end of last year. In the history of the world defense industry, there has never been a case when 12 combat aircraft were delivered in one year. It was a very demanding task for KAI.
Quay workers reassemble FA-50 Units 11 and 12 at an assembly center at Minsk Air Base, Poland. /Reporter Park Seong-woo
◇ Poland surprised by “fast delivery”… Delivery to No. 12 completed
After the Russian invasion of Ukraine, clouds of war hang over Poland. The border between Poland and Lviv in western Ukraine, which was hit by a Russian missile attack in July last year, is just 50 km away. Citizens I met in Poland said: “The next target of Ukraine, which borders Ukraine, could be Poland.”
After the outbreak of war between Russia and Ukraine, the Polish government began to strengthen its national defense capabilities and decided to urgently introduce weapons to KAI. The delivery of KAI was a “battle of speed”. Starting with Unit 1 in September last year, a total of 9 FA-50s were delivered through November when we visited the base. Work on the remaining three units was completed last month and delivery of a total of twelve units is nearing completion in a year. A KAI official said: “The delivery of three aircraft per month is the shortest delivery case in the history of the aircraft industry.”
The tenth completed FA-50 fighter jet is taken to the runway for flight testing./Reporter Park Seong-woo
The exported FA-50 is a fighter aircraft manufactured at KAI’s factory in Sacheon, Gyeongnam, which is divided into a total of 7 parts, including fuselage, wings (2), tail wing (2), horizontal wings (1) and engines (1) After transport, it is reassembled on site. For this purpose, 15 KAI engineers were sent to Poland.
On that day, assembly work on blocks 11 and 12 was in full swing in the hangar. Local Polish defense industry officials could not hide their surprise at the speed of KAI’s assembly, saying, “I can’t believe it.” Block 11, which arrived in Poland on November 26 last year, began two days later, on November 27 ., got to work and completed the engine assembly in just three days.
Kai’s workers sent to Poland are working on installing the FA-50 engine. They check whether the motor circuit is properly connected to the main body through a small palm-sized hole. /Reporter Park Seong-woo
On this day, workers were busy moving into Unit 11 and completing engine installation. An experienced worker with 30 years of quality inspection experience inspected the inside of the engine by inserting a small hand mirror into a palm-sized hole on the bottom of the fighter and said “Okay,” and other workers did the final work and lifted the engine cover remove and tighten the screws.
Once assembly is complete, ground testing begins. In addition to engine inspection, this also includes checking the functionality of various devices. Before a fighter jet is delivered, it goes through the following processes: “Assembly → Ground test → Flight test → Polish acceptance test (external, flight test, etc.) → Document check → Delivery approval”.
Appearance of the rear wing of FA-50 Unit 12 before assembly / Reporter Park Seong-woo
Lee Chang-jae, head of KAI’s European office, said: “The Polish military is very surprised and satisfied with our delivery speed,” adding: “I think this kind of delivery experience will be a competitive advantage when exporting to other European countries .” in the future. “We will do our best to prepare for the delivery of the second volume starting in 2025,” he said.
◇ Maintenance and repair contracts in 兆 units are also expected.
KAI cited the support of the Korean government as the reason for the quick delivery of twelve fighter aircraft. The quantity of 12 originally delivered to Poland was originally manufactured by KAI for delivery to the Korean Air Force. Fast delivery was possible because the Korean government, including the Ministry of Defense, allowed the switch to export quantities. With this contract, KAI has set the record for the largest order to date and the first entry into the European market since exports of the T-50 began in 2011.
Korea Aerospace Industries (KAI) signed a contract for the export of 48 FA-50 fighter aircraft with the Polish Armed Forces Agency in Minsk-Mazowiecki, Poland, on September 16, 2022 (local time). At the contracting ceremony that day, Kang Gu-young (right), President of Korea Aerospace Industries, and Polish Deputy Prime Minister and Defense Minister Mariusz Właszczak shake hands. /Provided by the Defense Acquisition Program Administration
Poland is considered a European outpost of the domestic defense industry. In addition to KAI, Hanwha Aerospace (012450) signed a contract worth a total of 12 trillion won, including the K-9 and the Chunmu multiple rocket launcher. Hyundai Rotem (064350) also signed an export contract worth around 4.5 trillion won, including the K-2 tank, and is currently negotiating the second contract.
Delivery of the second batch of KAI will begin in 2025. At the request of the Polish government, the modified FA-50PL configuration will be delivered by 2028. The FA-50PL is the most powerful model of the FA-50 and features an aerial refueling capability that increases range, an active phased array radar (AESA), and upgrades for air-to-ground and air-to-air weapons.
FA-50PL graphic form in accordance with Polish Air Force requirements. /provided by KAI
Director Lee said: “The FA-50PL is not only suitable for a variety of missions such as light attack, special tactics and combat operations, but is also highly compatible with the F-16 and for training and training 5th generation fighters “like the F-35.” “We plan to expand the European market based on our success in Poland,” he said.
With this contract, KAI plans to establish a logistics center in Poland and gradually promote the operation of an international flight school to meet the training needs of 4th and 5th generation fighter pilots in Europe. In addition, the company is also seeking an aircraft maintenance, repair and operations (MRO) business contract.
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