Hanwha Aerospace said Thursday it had signed a memorandum of understanding with Canada's Automotive Parts Manufacturers’ Association and Hanwha Ocean to cooperate on the production of military and special-purpose vehicles in Ontario.
The proposed joint venture is contingent on the outcome of Canada's planned purchase of up to 12 new diesel-powered submarines to replace the country's aging fleet, known as the Canadian Patrol Submarine Project.
If Hanwha Ocean's Jangbogo-class submarine is selected as a finalist, the joint venture will establish development and production systems for ground weapons platforms required by the Canadian military, using locally sourced materials such as steel and aluminum and employing Canadian workers.
Hanwha said it had established a cooperation network with more than 30 Canadian companies and expects the partnerships to accelerate localization in the country’s defense sector.
The company also plans to expand its business portfolio to include full-scale production of special-purpose vehicles, targeting demand from the Canadian government and military sectors as well as Arctic resource development, while exploring export opportunities to allied markets.
The joint venture, if realized, is expected to generate significant economic impact. According to KPMG, Hanwha’s investment could create an average of 22,500 full-time jobs annually from 2026 to 2044 and contribute a cumulative 94.1 billion Canadian dollars ($68.8 billion) to Canada’s GDP.
“The agreement marks a starting point for combining Canada’s manufacturing capabilities with Hanwha’s defense technologies to pursue local production and global expansion,” said CEO Son Jae-il. “We aim to build long-term partnerships with the Canadian government and industry to strengthen defense capabilities and foster a sustainable industrial ecosystem.”
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