South Korea’s Hanwha Ocean received a boost in its bid to construct Canada’s new submarine fleet as three high-ranking South Korean officials solidified a partnership between the shipyard, Canada’s Automotive Parts Manufacturers Association (APMA), and Algoma Steel on Monday. Presidential Special Envoy Kang Hoon-sik, Defense Acquisition Program Administration (DAPA) Minister Lee Yong-cheol, and Vice-Minister of Trade, Industry, and Resources Moon Shin-hak attended the partnership signing at Martinrea International in Vaughn, Ont.
Emphasizing South Korea’s commitment to industrial cooperation, the officials disclosed that Hanwha Group had inked an additional memorandum with APMA and Algoma to utilize Canadian steel in manufacturing armored vehicle components at Martinrea. Kang highlighted the significance of the partnership in establishing a complete Canadian supply chain, from raw materials to final vehicle production, all within Canada.
The South Korean government anticipates that this collaboration will significantly contribute to Canada’s industrial sovereignty, economic resilience, national security, and job creation. The agreement aligns with the Canadian government’s directive for contract bidders to support the country’s automotive and steel sectors. Hanwha has also proposed setting up an assembly facility for military ground vehicles as part of its industrial benefits proposal.
Prime Minister Mark Carney is set to choose between Hanwha’s bid and a competing proposal from Germany’s ThyssenKrupp Marine Systems (TKMS) by the end of the month. The South Korean navy recently showcased the KSS-III submarine it aims to sell to Canada during a port visit in Victoria.
The signing of these agreements by a senior delegation signifies South Korea’s strong commitment to building lasting capability in Canada with local companies. Flavio Volpe, president of APMA, emphasized the potential benefits for Canada’s manufacturing sector if Hanwha secures the submarine contract, estimating the economic activity equivalent to establishing a new car plant and the creation of thousands of direct and indirect jobs.
TKMS, supported by the German and Norwegian governments, is promoting the Type 212CD submarine, an updated version of its existing Type 212 design, for the Canadian bid. Both Hanwha and TKMS have been actively forming partnership agreements in anticipation of the Canadian government’s decision. TKMS recently partnered with CAE, a Canadian simulator and training company, to enhance their collaboration in providing integrated naval training and simulation solutions for modern naval operations.