Toronto: Hanwha Ocean Co., a shipbuilding unit of Hanwha Group, along with its defense solutions affiliate, Hanwha Systems Co., has entered into partnership agreements with Canadian companies specializing in steel, artificial intelligence (AI), and aerospace. This initiative is part of their strategy to strengthen their bid for a lucrative Canadian submarine project valued in the multibillion-dollar range.
According to Yonhap News Agency, the agreements were finalized during a Korea-Canada industrial cooperation forum held in Toronto. These partnerships aim to fulfill the Canadian government's offset requirements, which are crucial for selecting the winner of the submarine program. The offset policy requires sellers to provide industrial benefits, such as technology transfers, to the buyer's country as part of the defense contract.
To bolster the Korean consortium's bid for the Canadian submarine project, estimated at 60 trillion won (US$41.4 billion), the South Korean government dispatched a special delegation. The delegation was led by presidential chief of staff Kang Hoon-sik and Industry Minister Kim Jung-kwan. The consortium, composed of Hanwha Ocean and HD Hyundai Heavy Industries Co., is a finalist in the bid, competing against Germany's ThyssenKrupp Marine Systems.
Hanwha Group reported that Hanwha Ocean has signed a memorandum of understanding (MOU) with Algoma Steel Inc., a prominent Canadian steelmaker, involving an investment of approximately $251 million. The agreement entails collaboration on constructing a new steel beam mill in Canada and establishing infrastructure for supplying steel products necessary for submarine repair and maintenance facilities.
Kim Hee-cheul, CEO of Hanwha Ocean, stated, "By establishing stable, long-term steel production and infrastructure in Canada, we will contribute to securing reliable submarine capabilities not only for today but for future generations."
In another MOU, Hanwha Ocean and Hanwha Systems teamed up with Canada's AI company Cohere Inc. to develop AI technologies for shipbuilding and submarine operation systems using Cohere's AI models. Additionally, Hanwha Systems inked an MOU with Telesat, a Canadian satellite communications firm, to collaborate on low Earth orbit satellite projects.
The company also secured partnerships with Canada's MDA Space and PV Labs to collaborate on space technology and imaging solutions applicable to defense purposes. Son Jae-il, CEO of Hanwha Systems, emphasized, "Hanwha Systems will make efforts to help Korea establish itself as a core partner in Canada's global economic and security supply chain, leveraging our submarine operation technologies across marine, satellite, AI and security sectors."