Three high-ranking officials from South Korea have taken steps to bolster Hanwha Ocean’s proposal for constructing Canada’s new submarine fleet by solidifying a partnership between the shipyard and Canada’s Automotive Parts Manufacturers Association (APMA) and Algoma Steel. The Presidential Special Envoy Kang Hoon-sik, Defense Acquisition Program Administration (DAPA) Minister Lee Yong-cheol, and Vice-Minister of Trade, Industry, and Resources (MOTIR) Moon Shin-hak attended the partnership signing at Martinrea International in Vaughn, Ont.
During the event, all three officials emphasized South Korea’s industrial commitment in support of Hanwha Ocean potentially securing the multibillion-dollar submarine contract. They announced that the Hanwha Group had entered into an additional memorandum with the APMA and Algoma to utilize Canadian steel in manufacturing armoured vehicle parts at Martinrea.
“This partnership is significant as it aims to establish a comprehensive Canadian supply chain entirely within Canada, from raw materials and components to final vehicle production,” stated Kang. He highlighted that the collaboration is expected to significantly contribute to Canada’s industrial sovereignty, economic resilience, national security, and job creation, aligning with the Canadian government’s objectives for contract bidders to bolster the automotive and steel sectors.
In a bid to sweeten the deal, the South Korean company has proposed the potential establishment of an assembly facility for military ground vehicles as part of its industrial benefits package. Prime Minister Mark Carney indicated that a decision between Hanwha and a competing bid from Germany’s ThyssenKrupp Marine Systems (TKMS) will be made by the end of the month.
Notably, the South Korean navy recently exhibited the KSS-III submarine it aims to sell to Canada during a port visit in Victoria. The signing of these agreements by a high-profile delegation signifies a strong commitment from the Korean government to foster lasting capability in Canada through partnerships with local companies, according to Flavio Volpe, president of the APMA.
Volpe emphasized the substantial benefits to Canada’s manufacturing sector if Hanwha secures the submarine supply contract, estimating the economic activity generated to be equivalent to establishing a new car plant, potentially creating 15,000 direct jobs and another 15,000 indirect jobs through the supply chain.
As the Canadian government nears a decision, both Hanwha and TKMS have been actively forming partnership agreements in anticipation of the outcome. TKMS, supported by the German and Norwegian governments, is promoting the Type 212CD submarine, an upgraded version of its existing Type 212 design. The companies are positioning themselves strategically to align with evolving naval operation requirements and emerging threats, as highlighted by Oliver Burkhard, CEO of TKMS, in a recent statement.