Hanwha Aerospace factory explosion in South Korea reportedly kills five
An explosion on Sunday at the Hanwha Aerospace factory in Boeun, South Korea, reportedly killed five workers. Hanwha Aerospace is a group company that plays a significant role in defence-industry supply chains; an investigation has been opened and production has been temporarily halted. Shares are expected to fall at Monday's open.
Nikkei Asia · Staff WriterAn explosion at the Hanwha Aerospace factory in Boeun, in South Korea's Chungcheongbuk-do province, killed five workers on Sunday afternoon, according to the company's initial statement. Nikkei Asia reports that fire and medical crews secured the site after a roughly four-hour rescue operation. The plant, part of the Hanwha group, is used in the manufacture of munitions and precision components for the defence industry.
Hanwha Aerospace chief executive Son Jae-il said in a statement the company 'expresses condolences to the families of the lost workers, will launch a comprehensive internal investigation, and has temporarily halted production'. South Korean Labour Ministry spokesperson Kim Min-suk said a special inspection team has been deployed to the site and that the cause of the explosion will be determined in a technical report. Shares listed on the KOSPI in Seoul are expected to come under pressure at Monday's open.
Hanwha Aerospace has annual revenue of around 8.2 billion dollars and is known for producing the K-9 self-propelled howitzer and engine components. Daewoo Securities analyst Lee Min-hwa said the incident 'will affect the company's worker-safety reputation, even if the production interruption is short'. Families have been briefed in Boeun, and the Labour Ministry is aiming to complete its full inspection within seven days. This article is not investment advice.
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