Partnership tied to submarine project outcome
Local supply chain and workforce at the center
Expansion into industrial vehicles and export markets under review
Officials pose for a commemorative photo at the MOU signing ceremony held in Canada on April 29 (local time). From left in the front row: Flavio Volpe, President of the APMA; Son Jae-il, CEO of Hanwha Aerospace; and Jung Seung-kyun, Head of the Naval Ship Overseas Business Group at Hanwha Ocean. / Courtesy of Hanwha Aerospace
Hanwha Aerospace is moving to strengthen its foothold in Canada’s defense sector by advancing plans to establish a joint venture for the production of military and special-purpose vehicles with local industry partners.
The company signed a memorandum of understanding (MOU) with the Automotive Parts Manufacturers’ Association (APMA) of Canada and Hanwha Ocean to explore the creation of a joint venture focused on manufacturing military and industrial vehicles. The initiative is expected to gain momentum depending on the outcome of Canada’s Canadian Patrol Submarine Project (CPSP), where Hanwha Ocean’s KSS-III Batch-II submarine is under consideration.
The proposed collaboration goes beyond a single project, signaling a broader effort by Hanwha to embed itself in Canada’s defense ecosystem. The company has already built a network of partnerships with more than 30 Canadian firms, and the latest move is seen as a step toward establishing a localized production base.
If realized, the joint venture would prioritize local manufacturing by utilizing Canadian-sourced materials such as steel and aluminum, while employing a domestic workforce. This approach aligns with the Canadian government’s “Build in Canada” defense industry strategy, which emphasizes domestic production and supply chain resilience.
The business scope is also expected to extend beyond military platforms. Hanwha and its partners are considering expanding into the design and production of specialized industrial vehicles, targeting demand from public sector projects and Arctic resource development. The companies are also exploring opportunities to export these products to allied markets.
Economic projections underscore the potential impact of the initiative. According to analysis by KPMG, Hanwha’s investment in Canada could generate an average of approximately 22,500 jobs annually between 2026 and 2044, while contributing a cumulative CAD 94 billion to the country’s GDP.
Industry observers view the move as part of a broader strategy to integrate naval and land-based defense systems into a comprehensive export package, enhancing competitiveness in the global defense market.
Hanwha Aerospace said the partnership would serve as a foundation for long-term collaboration with the Canadian government and industry, supporting both local industrial development and future expansion into global markets.
Lee Jun-sung
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