Hanwha Aerospace said on the 30th that it will develop and produce its ground weapons systems locally to support winning the Canada Patrol Submarine Project (CPSP).

On the 29th (local time), key officials pose for a commemorative photo at an MOU signing ceremony in Canada. Front row, from left: Flavio Volpe, APMA President; Son Jae-il, Hanwha Aerospace CEO; Jeong Seung-gyun, Hanwha Ocean Head of Special Ships Overseas Business. /Courtesy of Hanwha Aerospace

Hanwha Aerospace on the 29th (local time) in Ontario, Canada, signed a memorandum of understanding (MOU) to establish a joint venture for the production of military vehicles and special-purpose industrial vehicles with the Automotive Parts Manufacturers' Association (APMA) of Canada and Hanwha Ocean. The joint venture is slated to be established if Hanwha Ocean succeeds in winning the CPSP.

CPSP is a large-scale project to order up to 12 diesel submarines. Including maintenance, repair and overhaul (MRO), it is expected to reach up to 60 trillion won. Hanwha Group and Germany's Thyssenkrupp Marine Systems (TKMS) are currently competing.

The joint venture will develop the ground weapons systems needed by the Canadian Army and build a production system. The joint venture plans to produce vehicles using local parts and materials such as Canadian steel and aluminum and to hire local personnel for the manufacturing process.

In addition, the joint venture plans to diversify its business portfolio into the design and production of special-industrial vehicles. After meeting demand from Canadian public offices and the military as well as Arctic resource development, it will explore exports to neighboring countries based on that. A Hanwha Aerospace official said, "If the joint venture is realized, the economic ripple effect in Canada's military and special-purpose industrial vehicle sector will be significant."

According to analysis by global accounting and consulting corporations KPMG, Hanwha's investment in Canada is expected to create an average of 22,500 full-time jobs per year and $94.1 billion Canadian dollars (about 102.4 trillion won) in gross domestic product (GDP) from 2026 to 2044.

Son Jae-il, CEO of Hanwha Aerospace, said, "This is a starting point to jointly pursue local production and entry into the global market by combining Canada's manufacturing capabilities with Hanwha Aerospace's defense technology capabilities," adding, "We will strengthen Canada's defense capabilities and contribute to building a sustainable industrial ecosystem in Canada."

※ This article has been translated by AI. Share your feedback here.