Physical AI company Machinrax said on Monday it signed a strategic memorandum of understanding with Hanwha Systems to expand AI transformation, or AX, projects across various manufacturing sites in South Korea and overseas.

Under the agreement, Machinrax will work as a strategic partner in Hanwha Systems' AI agent development and platform adoption projects. Machinrax plans to set up a dedicated task force to cooperate with Hanwha Systems in the Yeongnam region, a key hub for manufacturing.

Machinrax said its order intake in the first half of this year topped 20 billion won. That was about three times the level of the same period a year earlier, 6.4 billion won, and close to last year's full-year orders of 20.5 billion won. It said the agreement would bolster its push to expand manufacturing AX projects.

Kim Yoon-su (김윤수), head of Hanwha Systems' Value Creation Division, said manufacturing AX projects require partners that have both on-site domain knowledge and AI technology capabilities. He said the company would secure agent development capabilities in a stable manner and enhance business competitiveness through cooperation with Machinrax.

Machinrax CEO Yoon Sung-ho (윤성호) said manufacturing sites are a mission-critical industry that spans processes and equipment, making data security and on-site trust more important than anything. He said strategic cooperation with Hanwha Systems would help validate agent development capabilities and position Machinrax as an indispensable partner leading AI transformation in manufacturing sites.