Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeCommoditiesSouth Korea's Hanwha signs MOU to build military vehicles using Canadian steelThe plan hinges on the South Korean company clinching the deal to supply up to 12 submarines to the Canadian governmentLast updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.The president and CEO of Hanwha Defence Canada Glenn Copeland photographed at outside of Hanwha booth at CANSEC defence trade show at Cohere Centre in Ottawa on Thursday, May 28, 2026. Photo by HYUNGCHEOL PARK /PostmediaAs South Korea’s Hanwha Corp. awaits Ottawa’s decision on the winner of a multibillion-dollar submarine contract, the defence giant is sweetening its deal by growing its defence ambitions in Canada.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorHanwha, the Automotive Parts Manufacturers’ Association (APMA) and Sault Ste. Marie, Ont.-based Algoma Steel Inc. signed a memorandum of understanding (MOU) on Monday to explore manufacturing military and industrial ground vehicles in Canada for both domestic and export markets. The MOU combines Algoma’s defence-grade steel, APMA’s network of domestic suppliers and Hanwha’s military vehicle technology.Whether the plan moves ahead, however, hinges on the South Korean company clinching the deal to supply up to 12 submarines to the Canadian government — the country’s first new ones in decades.“A lot of this is contingent right now on Hanwha actually winning the submarine program,” Glenn Copeland, chief executive of Hanwha Defence Canada, said. “We’ll see what the future looks like, depending on what the decision is.”A delegation led by South Korean presidential special envoy Kang Hoon-sik attended Monday’s announcement held at Martinrea International Inc.’s headquarters in Vaughan, Ont. South Korean senior officials responsible for defence procurement and industrial cooperation were also present.“We’re talking about multiple hundreds of vehicles to be produced in Canada for the army, for future needs,” Copeland said.He said APMA, as the majority shareholder in the agreement, will determine if the production of military vehicles requires a new facility or whether retooling an existing plant is all that’s needed.Hanwha has unveiled a string of deals as it competes with Germany’s Thyssenkrupp Marine Systems (TKMS) for Canada’s sought-after submarine contract.Some of Hanwha’s pledges include collaborations with Canadian research and development organizations across energy, critical minerals, aerospace, maritime surveillance and autonomous systems.TKMS has also made a series of commitments, including plans to manufacture torpedoes in Manitoba, build a maintenance and repair facility in Canada and work with domestic technology and critical minerals companies. Entrance to Hanwha booth at CANSEC defence trade show at Cohere Centre in Ottawa on Wednesday, May 27, 2026. Photo by HYUNGCHEOL PARK /PostmediaCopeland said Hanwha’s latest MOU would be rolled out immediately should Hanwha secure the submarine deal.“Everyone heard the commitment from us is to commence the investments right away, not to wait,” he said. “All of our investments are contingent or predicated on doing this as soon as possible, not over the long haul.”The South Korean delegation outlined plans it said would generate 430,000 jobs and $96.3 billion in economic activity between 2026 and 2044.The commitments include doubling investment in LNG Canada to $3.2 billion, purchasing $9-billion worth of Canadian critical minerals, investing in graphite mines and importing between 16 million and 20 million barrels of Canadian crude oil annually over the next two years, making South Korea Canada’s third-largest export market for oil.“We’re committed to Canada,” Copeland said. “We see Canada as very much the future footprint for the corporation. Definitely, this is tied to the submarine program right now. Our No. 1 goal, or No. 1 objective, is to win the submarines.”The announcement also deepened Hanwha’s existing relationship with Algoma Steel.In January, Hanwha Ocean Co. Ltd., a global shipbuilding and submarine manufacturer, signed an MOU to provide approximately $275 million to Algoma to build a structural steel beam mill in Sault Ste. Marie. Hanwha Ocean had also said it would purchase up to $70-million worth of Algoma steel products for its submarine proposal, helping to cushion industries battered by United States President Donald Trump’s tariffs.“Strength in numbers — the relationship can grow,” Copeland said when asked why Algoma Steel was included in Monday’s MOU.The proposal initially began as a joint venture between APMA and Hanwha that was announced in April.“We can have a lot more certainty on the parts delivery side,” he said. “And then it certainly helps Algoma Steel.”Executives from several major Canadian auto parts suppliers, including Windsor-based Narmco Group, Martinrea and Guelph, Ont.-based Linamar Corp., met with the South Korean delegation to discuss how their companies could participate in the defence supply chain.“That sends a powerful signal that the Korean government is serious about building real, lasting capability here in Canada, with Canadian companies,” APMA president Flavio Volpe said in a news release. “Our members came ready to discuss practical opportunities, and they are ready to help build the next generation of Canadian defence manufacturing.”The Canadian government is expected to award the submarine contract later this month. It is valued at roughly $25 billion, plus tens of billions of dollars more in infrastructure, maintenance and support in the years ahead. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.