Hanwha Aerospace (KRX:012450) signed a term sheet with Polish private defense company WB Group to establish a joint venture for producing CGR-80 guided missiles for the Homar-K rocket system, the aerospace company said earlier this week.

Hanwha will hold a 51% stake, while WB Electronics will own the remaining 49%, pending regulatory approval. The joint venture will also explore missile exports to neighboring European markets, the release said.

Shares of Hanwha Aerospace increased more than 5% in recent trade on Friday.