Hanwha Group from South Korea is enhancing its proposal for Canada’s submarine program, aiming to boost the country’s defense industry. The company has partnered with Canada’s Automotive Parts Manufacturers’ Association (APMA) to potentially manufacture armored vehicles in Canada if awarded the submarine contract. A year ago, Hanwha Ocean and Hanwha Aerospace submitted an unsolicited bid to the Canadian government, offering submarines, K-9 mobile artillery guns, and armored vehicles.
As part of their bid, Hanwha proposed establishing an armoured vehicle maintenance and manufacturing facility in Canada. They have expressed interest in assisting Canada in strengthening its defense industrial capacity. The recent partnership with APMA was announced following the government granting Hanwha Ocean and German bidder TKMS additional time to refine the economic benefits of their bids, with the deadline for updated proposals being Wednesday.
Industry Minister Melanie Joly has shown support for repurposing idle Canadian auto plants for military-grade vehicle production amid trade tensions with the U.S. Hanwha envisions manufacturing K-9 howitzers, Redback infantry fighting vehicles, Chunmoo multiple launch rocket systems, and ground drones in Canada through this partnership.
Hanwha aims to produce these vehicles entirely in Canada using local labor and materials, potentially generating thousands of jobs in the automotive sector. The company plans to collaborate with APMA to establish a Canadian automotive unit dedicated to designing and manufacturing industrial vehicles for the Canadian Armed Forces.
This initiative could pose competition to General Dynamics Land Systems Canada, a long-standing partner of the federal government in defense manufacturing. The proposal aligns with Hanwha’s goal of expanding its presence in the Canadian defense industry and contributing to the country’s economic growth through domestic manufacturing.