(ATTN: UPDATES throughout with Hanwha's statement, more details; CHANGES headline)

By Kim Eun-jung

SEOUL, Aug. 19 (Yonhap) -- South Korean defense firm Hanwha Aerospace Co. said Wednesday its U.S. unit has won a contract to deliver K9 self-propelled howitzer prototypes for the U.S. Army's artillery modernization program.

Hanwha Defense USA was selected to provide prototypes based on the K9 platform for the Army's Mobile Tactical Cannon (MTC) program, which aims to develop a highly mobile 155 mm artillery system to replace the Army's aging M777 towed howitzers.

The contract calls for the delivery of six MTC prototypes, with an option for an additional 12 systems, and has a cumulative value of up to US$262.9 million, according to a separate U.S. Army statement.

"Soldiers will use these platforms in a series of operational experiments to assess performance, reliability, and supportability in realistic combat conditions," the U.S. Army said in a statement.

Hanwha Aerospace said the contract marks the K9 system's first entry into the U.S. defense market, the world's largest, and pledged to establish a stable production base as part of its localization strategy.

In April, Hanwha Defense USA signed a three-year lease for an idle facility in Opelika, Alabama, as part of efforts to localize production in the United States, according to the company.

The arms manufacturer said it also plans to invest in the U.S. self-propelled howitzer supply chain to expand its presence in the combat vehicle market and establish itself as a long-term partner in the U.S. Army's modernization efforts.

The contract marks another step in Hanwha's efforts to expand the global footprint of the K9, which is already in service or under contract in a number of countries, including NATO members such as Poland, Romania, Norway and Finland.

ejkim@yna.co.kr

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