Hanwha Group and the Ontario-based Automotive Parts Manufacturers’ Association (APMA) have agreed to form a joint venture to build military vehicles in Canada, with the deal hinging on the South Korean company securing a multibillion-dollar attack submarine contract.
The proposed entity would produce a range of armored systems with a Canadian workforce and locally sourced materials, such as steel and aluminum, for domestic use and export.
The deal will go through if Ottawa selects Hanwha’s Dosan Ahn Changho-class (KSS-III) diesel-electric ballistic missile systems for the Canadian Patrol Submarine Project (CPSP).
Howitzers to Ground Drones Offered
Flavio Volpe, president at APMA, said that the collaboration could help stabilize the NATO country’s struggling automotive sector.
Included in the package are the K9 Thunder self-propelled howitzer and its K10 ammunition resupply variant, the K21 Redback infantry fighting vehicle, and the K239 Chunmoo rocket artillery system, along with unmanned ground vehicles.
“This joint venture will deliver on the Prime Minister’s challenge… to help drive the country’s unprecedented commitment to national defence,” Volpe said.
Canadian-Controlled Structure
Hanwha noted that the planned venture would operate under Canadian majority ownership, with a Canadian CEO, and align with the North American government’s “Build in Canada” defense strategy.
The effort also includes launching a domestic capability to design and assemble non-commercial industrial vehicles for military, government, and emergency services.
“Canada brings world-class advanced manufacturing,” said Son Jae-il, CEO of Hanwha Aerospace.
“Combined with Hanwha’s technology… we could accomplish a new model of cooperation that goes beyond mere procurements.”
The Canadian Patrol Submarine Project
The CPSP competition, which also includes Germany’s thyssenkrupp Marine Systems, is expected to conclude later this year after Ottawa extended the bidding deadline to encourage stronger industrial benefits proposals.
About 12 vessels are expected under the program, with the entire work valued at up to 43 billion Canadian dollars ($31.4 billion).
The next-generation fleet will replace the Royal Canadian Navy’s Victoria-class submarines, which were purchased secondhand from the UK in the late 1990s, once they are commissioned beginning in 2035.
