Steel, AI, shipyard training included in broader ecosystem push beyond defense exports
Hanwha Ocean said Thursday that it is expanding its push for Canada’s next-generation submarine program beyond a conventional defense export, positioning it as a long-term industrial and security partnership centered on localization and technology transfer.
The company has signed more than 10 cooperation agreements — including technical cooperation agreements, memorandums of understanding and teaming agreements — to proactively meet Canada’s industrial and technological benefits requirements, which emphasize local production, offset commitments and technology transfer.
Starting point: Babcock Canada
Hanwha Ocean formally entered the Canadian market in 2023 by signing a technical cooperation agreement with Babcock Canada aimed at advancing Canada’s maritime defense capabilities.
The partnership covers submarine design, construction and life cycle support. Hanwha Ocean plans to combine its shipbuilding expertise with Babcock’s local operational and maintenance capabilities to develop a model tailored to Canada’s defense needs.
Deepening local alliances
Momentum accelerated following the “Deep Blue Forum” in Ottawa, where Hanwha Ocean signed MOUs with Canadian firms including CAE Inc., J-Squared Technologies, Modest Tree and Des Nedhe. The agreements are designed to facilitate participation by small and medium-sized enterprises and Indigenous-owned businesses while strengthening compliance with Canada’s localization and investment requirements.
At Cansec, Canada’s largest defense exhibition, Hanwha Ocean signed a teaming agreement with CAE and pursued cooperation with Curtiss-Wright Indal Technologies and Gastops -- Canadian engineering companies -- in areas such as sensors, propulsion and simulation. Additional collaborations with BlackBerry and L3Harris MAPPS aim to integrate cybersecurity and advanced simulation technologies into what the company describes as a comprehensive maritime defense solution.
Hanwha Ocean is also partnering with Ontario Shipyards and Mohawk College to transfer ship design, process management, quality control and smart shipbuilding technologies.
The collaboration includes plans to establish a workforce training hub within shipyards to cultivate skilled labor over the next 10 to 15 years, embedding technological and human capital capabilities within Canada.
Beyond shipbuilding: Steel, AI and space
Hanwha Ocean has also broadened cooperation into adjacent industries.
At a Korea-Canada industrial cooperation forum in Toronto, the company signed memorandums with firms across five sectors: steel (Algoma Steel), artificial intelligence (Cohere), satellite communications (Telesat), space (MDA Space) and electro-optics (PV Labs).
The company presented plans to invest in local steel production facilities and submarine construction and maintenance infrastructure, signaling an expansion of the project into a broader national-level industrial package.
Whole-of-government backing
The Korean government has stepped up support alongside the company’s localization strategy.
The Defense Acquisition Program Administration recently held a signing ceremony pledging government support and commitment to fulfilling industrial and technological benefits obligations tied to Hanwha Ocean’s submarine bid.
The pledge reflects coordinated efforts among multiple ministries — including the Defense Ministry, Navy, Foreign Ministry, Industry Ministry, Science Ministry and Environment Ministry — to support the project and ensure responsible implementation of industrial cooperation commitments.
In Canada’s submarine program, industrial benefits and localization capabilities are considered as critical as platform performance in bid evaluations.
Hanwha Ocean’s strategy in Canada is evolving from a standalone export campaign into what industry observers describe as a “national package-style industrial alliance,” combining industrial, technological and government capabilities.
"Rather than supplying a submarine platform alone, the company is seeking to position itself as a long-term partner in strengthening Canada’s industrial base and defense capacity," said a Hanwha Ocean official.
hyejin2@heraldcorp.com
