Hanwha Aerospace said April 30 that it signed a memorandum of understanding on April 29 (local time) in Ontario with APMA and Hanwha Ocean to pursue a joint venture to produce military vehicles and special-purpose industrial vehicles.
The companies said the partnership would move forward in earnest if Hanwha Ocean’s Jangbogo-III Batch-II submarine is selected for Canada’s Canadian Patrol Submarine Project, linking the submarine bid to a broader package that expands into ground systems.
Attendees at the signing included Hanwha Aerospace CEO Son Jae-il; Jeong Seung-gyun, head of Hanwha Ocean’s overseas special ship business; Ontario Minister of Economic Development Victor Fedeli; APMA President Flavio Volpe; and Martinrea Chairman Robert Wildeboer.
Hanwha said it has built a cooperation base in Canada by signing agreements with more than 30 local companies, and that the APMA partnership is intended to deepen its localization strategy.
If the submarine is chosen for the CPSP, the joint venture would establish development and production systems for ground weapons the Canadian Army needs, the company said.
The venture also plans to use Canadian-made materials such as steel and aluminum and hire local workers for production, aligning with the Canadian government’s emphasis on domestic manufacturing.
Over time, the joint venture aims to expand into the design and production of special-purpose industrial vehicles, prioritizing Canadian military and public-sector demand and Arctic resource development needs while also exploring exports to allied countries.
Hanwha cited an analysis by global accounting and consulting firm KPMG projecting that Hanwha’s investment in Canada would create an average of 22,500 jobs a year from this year through 2044 and generate a cumulative C$94.1 billion (about 102.4 trillion won) in GDP.
“This MOU is a starting point for combining Canada’s manufacturing capabilities with Hanwha’s defense technology,” Son said. “Based on local production, we will expand into global markets and contribute to strengthening Canada’s defense capabilities.”
* This article has been translated by AI.
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