Hanwha Aerospace Exports Cheonmu to Croatia for 640 Billion Won

Central banks around the world are maintaining their interest rate hike stance based on strong growth rates. Japan, after hesitating to raise interest rates, showed signs of attempting to stabilize the market by signaling a hike when the market became unstable. On the other hand, there is a possibility that the U.S. may hesitate to raise interest rates, mindful of the midterm elections.

In France, amid escalating fiscal pressure on public debt, a far-left presidential candidate put forth a radical proposal to cancel government debt held by the central bank. However, European Central Bank (ECB) President Lagarde immediately rejected this proposal, taking a firm stance.

According to a Financial Times report, U.S. dissatisfaction is growing because Korea's $350 billion investment in the U.S. has not yet been executed. It is expected that a related investment fund will be announced next week, which is interpreted as an intention to maximize the investment effect in line with the U.S. midterm elections.

The domestic stock market saw international oil prices surpass $100, raising concerns about rising energy costs. In addition, as U.S. 10-year Treasury yields rose to 4.96%, approaching 5%, investors' psychological anxiety intensified. Macroeconomic headwinds accumulated this week, exacerbating the overall burden on the market.

The export volume amounts to approximately 640 billion won. This marks the fourth European export case, following Poland, Estonia, and Norway, proving Cheonmu's excellent performance. Cheonmu has the advantage of being able to load 12 rockets compared to the U.S. HIMARS (6 rockets).

In particular, 830 billion won will be invested in establishing a new production base for HiMSEN engines. This reflects high market expectations, as HiMSEN engines are being installed in Chinese ships due to increased demand from global shipowners.

With continuous orders in the trillions of won, a phenomenon has emerged where marine engine production capacity is being repurposed to meet the demand of the power generation market. This indicates the need for expansion due to the rapid growth of the power generation market, separate from the shipbuilding market.

In 1999, Hyundai Heavy Industries underwent a restructuring where its power generation equipment business unit was transferred to Korea Heavy Industries (now Doosan Enerbility) due to nationwide over-investment in power generation facilities. However, with the recent explosive growth of the AI data center market, demand for power generation facilities has surged. As a result, Hyundai Heavy Industries is re-expanding into the power generation equipment sector it had previously divested, adapting to market changes.

In contrast, LIG Nex1 is strong in guided missile systems like Cheongung. This demonstrates that domestic defense companies have their respective specialized areas and build complementary systems.

With the rapid growth of the Energy Storage System (ESS) market, battery orders are pouring in at an immense rate, pushing battery factory utilization close to 100%. Consequently, orders for MLCCs (Multi-Layer Ceramic Capacitors), essential for Battery Management Systems (BMS), have also surged. However, AI data centers are sweeping up large quantities of MLCCs, causing a severe bottleneck in the MLCC supply chain for the battery industry. The order-to-production capacity ratio for major MLCC companies like Samsung Electro-Mechanics is exceeding 100, reaching up to 160.

Production shortages in key manufacturing sectors such as MLCCs, refining, batteries, and copper foil are expected to persist for quite some time. These production shortages are leading to a global surge in raw material prices. The FTIS Commodity Index on the London Exchange has soared 42% year-to-date, recording its highest super-rally since the 2008 financial crisis. The combination of overall manufacturing capacity shortages and rising raw material prices is significantly impacting the economy as a whole.