Hanwha Aerospace (KRX:012450) has agreed to terminate its supply contract with Vertical Aerospace, originally signed on Aug. 23, 2022, for the development and supply of EMA, tilting, and blade pitch systems for the VX4 aircraft.

The contract, valued at approximately 454.8 billion won, representing 7.09% of Hanwha's 2021 sales, was ended early on July 31, by mutual agreement, according to a bourse filing on Monday.

Both companies cited changes in market conditions and strategic direction since the contract's signing as the primary reasons for termination.

Simultaneously, the parties have signed a memorandum of understanding to maintain future cooperation and establish a foundation for collaboration on similar development and mass-supply projects.