Hanwha Aerospace Partners with Canadian APMA to Accelerate Defense Localization

Three-Way MOU Signed with Hanwha Ocean and APMA
Local Production of Ground Weapon Systems in Canada

Hanwha Aerospace is partnering with the Automotive Parts Manufacturers' Association (APMA) of Canada to establish a joint venture for the production of military and industrial vehicles.

On the 29th (local time), Hanwha Aerospace announced that it had signed a memorandum of understanding (MOU) with APMA and Hanwha Ocean in Ontario, Canada, to establish a joint venture for the production of military vehicles and special-purpose industrial vehicles.

Hanwha Aerospace signed a memorandum of understanding (MOU) for the establishment of a joint venture with the Automotive Parts Manufacturers' Association (APMA) in Toronto, Canada on the 29th (local time). From left, Flavio Volpe, Chairman of APMA; Jaeil Son, CEO of Hanwha Aerospace; and Seungkyun Jung, Head of Overseas Special Ship Business at Hanwha Ocean. Hanwha Aerospace

This joint venture will be fully launched if Hanwha Ocean's Jangbogo-III Batch-II is selected for the Canadian Patrol Submarine Project (CPSP).

The signing ceremony, held at the Martinrea plant near Toronto, Ontario, was attended by Jaeil Son, CEO of Hanwha Aerospace; Seungkyun Jung, Head of Overseas Special Ship Operations at Hanwha Ocean; Victor Fedeli, Ontario Minister of Economic Development, Job Creation and Trade; Flavio Volpe, President of APMA; and Robert Wildeboer, Chairman of Martinrea, among other key stakeholders.

If Hanwha Ocean's Jangbogo submarine is selected for the CPSP, the joint venture plans to establish a full-fledged development and production system for ground weapon systems required by the Canadian Army.

The joint venture will use locally sourced components and materials, such as Canadian steel and aluminum, in its vehicle production, and local Canadian employees will directly participate in the manufacturing process. This initiative aligns with the Canadian government's recently announced National Defence Industrial Strategy, which emphasizes domestic production.

In the future, the joint venture will diversify its business portfolio to include the design and production of special industrial vehicles. The company aims to first meet the needs of Canadian government agencies and military, as well as the demand for Arctic resource development, while also exploring export opportunities to allied countries based on this foundation.

If realized, the joint venture is expected to have a significant economic impact on Canada's military and special-purpose industrial vehicle sectors. According to an analysis by global accounting and consulting firm KPMG, Hanwha's investment in Canada is projected to create an average of approximately 22,500 full-time jobs annually and generate a cumulative GDP of 94.1 billion Canadian dollars (about 102.4 trillion won) between 2026 and 2044.

CEO Son stated, "This MOU marks the beginning of combining Canada's manufacturing capabilities with Hanwha Aerospace's defense technology expertise to pursue both local production and entry into the global market. Through a long-term partnership with the Canadian government and industry, we will strengthen Canada's defense capabilities and contribute to building a sustainable industrial ecosystem in Canada."

This content was produced with the assistance of AI translation services.