Press Release
Hanwha signed multiple strategic Memorandums of Understanding (MOUs) with Canadian companies — Algoma Steel, Telesat, MDA Space, Cohere, and PV Labs — establishing a cross-sector industrial cooperation framework in support of the Canadian Patrol Submarine Project (CPSP).
The MOUs were signed on the sidelines of a visit by the Republic of Korea Presidential Chief of Staff-led delegation, underscoring South Korea’s commitment to supporting Canada’s long-term industrial development and job creation in line with nation-building priorities.
A recent KPMG analysis estimates that Hanwha-led industrial cooperation related to CPSP could support approximately 200,000 job-years over a 15-year period, with the potential to increase further as additional partnerships and investments are implemented.
Hanwha has further expanded its industrial partnerships in Canada, announcing a series of strategic MOUs spanning steel, space, artificial intelligence and advanced technologies in support of the Canadian Patrol Submarine Project (CPSP)
Signed on the sidelines of a visit to Toronto by a South Korean government and business delegation for industrial cooperation and investment discussions with Canadian companies, the MOUs highlight Hanwha’s long-term commitment to working with Canadian industry to support job creation, industrial development, as well as strengthening Canada’s sovereign defence, security and industrial capabilities, in line with nation-building priorities.
The Republic of Korea views the CPSP as an opportunity to elevate the Canada–Korea relationship into a durable, whole-of-government strategic partnership spanning defence, industry, technology and security cooperation. This approach is fully aligned with the Canada–Korea Free Trade Agreement, the Comprehensive Strategic Partnership, the Security and Defence Cooperation Partnership, and Canada’s Indo-Pacific Strategy.
Hanwha Ocean and Algoma Steel MOU for Canadian Steel Supply
Hanwha Ocean and Algoma Steel have entered into a binding MOU to establish a long-term strategic arrangement to support the revitalization of Canada’s steel sector and create jobs for Canadians. The partnership is designed to anchor key elements of submarine construction and sustainment in Canada by leveraging Algoma’s domestic steelmaking capabilities and Canadian workforce, reinforcing Canada’s naval readiness and industrial sovereignty.
Under the MOU, Hanwha Ocean is to provide Algoma with an aggregate potential value of up to USD $250 million (approximately CAD $345 million), comprising support for the development of a new structural steel beam mill in Canada, as well as anticipated purchases of steel products for use in CPSP-related submarine construction and associated maintenance, repair, and overhaul (MRO) infrastructure in Nova Scotia and British Columbia where the submarine fleet will be fully supported throughout its lifecycle.
The beam mill investment, in particular, would give Algoma a new business opportunity beyond submarines, supplying steel for infrastructure, housing, and road projects, and opening up new opportunities for Canadian workers in a market that has historically been dominated by imports.
Quotes:
“This partnership is about working side-by-side with Algoma as a leading Canadian steelmaker to build something lasting. By anchoring steel production, infrastructure, and long-term sustainment in Canada, we are committed to strengthening Canada’s industrial resilience and supporting a submarine capability that Canadians can rely on today and for generations.”
Hee Cheul Kim, President & CEO, Hanwha Ocean
“As we usher in a new era for Algoma with electric arc furnace steelmaking and modernized finishing capabilities, this strategic arrangement with Hanwha Ocean represents a foundational step forward in our diversification strategy. It reinforces our focus on becoming Canada’s leading sustainable steelmaker, aligned with the country’s nation-building priorities in defence and infrastructure. We also recognize and applaud the Government of Canada’s support for policies that strengthen domestic manufacturing, supply-chain resilience, and long-term industrial capability.”
Rajat Marwah, CEO, Algoma Steel
Hanwha Systems-Telesat for Secure LEO Satellite Communications Supporting Maritime and Submarine Operations
Hanwha Systems and Telesat have entered into an MoU to collaborate on next-generation sovereign satellite connectivity solutions and user terminals compatible with Telesat’s Low Earth Orbit (LEO) network, Telesat Lightspeed. The cooperation focuses on secure, high-capacity, and resilient satellite communications applicable to defence, maritime, and advanced naval platforms.
The collaboration builds on intergovernmental alignment between Canada and South Korea on next-generation LEO satellite communications and advanced maritime platforms. Under the MoU, Hanwha and Telesat will explore cooperation related to Korea’s LEO communications satellite constellation (K-LEO) and defence user terminals compatible with both K-LEO and Telesat Lightspeed.
Quotes:
“This collaboration brings together complementary resources and expertise to deliver next-generation, sovereign LEO communications capabilities for Canada, South Korea, and our allied partners. The secure, high-performance Telesat Lightspeed architecture—paired with Hanwha’s advanced systems expertise—positions us to support critical defense missions and national priorities with unmatched reliability.”
Dan Goldberg, President and CEO of Telesat
“This partnership enhances our ability to deliver secure LEO communications for defense and maritime operations,” “By expanding partnerships with trusted global leaders, Hanwha Systems will continue to strengthen its position in the global market and advance its role as a key defense and space technology provider,” he added.
Son Jae-il, CEO of Hanwha Systems
Hanwha Systems-MDA Space for Satellite Communications and Defence Space Cooperation
Hanwha Systems and MDA Space have entered into an MoU to explore collaboration on advanced satellite technologies, including the development of Korea’s sovereign Low Earth Orbit (K-LEO) defence constellation, leveraging MDA’s AURORA™ software-defined digital satellites.
The K-LEO constellation is a flagship national initiative designed to strengthen Korea’s sovereign defence capabilities and ensure secure, resilient communications and data service for national security operations.
The partnership brings together MDA Space’s next-generation AURORA™ software-defined satellite platform and Hanwha Systems’ expertise in defence electronics and space systems.
Quotes:
“This MOU marks an important first step in exploring collaboration with a global partner to advance Korea’s defence space capabilities. We will continue to assess next-generation satellite solutions capable of addressing evolving operational requirements.”
Jae-il Son, CEO of Hanwha Systems
“We are honoured to partner with Hanwha in support of Korea’s sovereign K-LEO defence constellation. This collaboration highlights the global confidence in MDA AURORA’s secure dual-use software-defined satellite technology to deliver mission-critical flexibility, performance, and resilience for national defence networks. Together with Hanwha, we look forward to advancing Korea’s defence infrastructure and enabling a new era of secure connectivity.”
Mike Greenley, CEO of MDA Space
Hanwha Ocean-Hanwha Systems-Cohere for AI-Based Submarine Systems and Smart Shipyards
Hanwha Ocean, Hanwha Systems, and Cohere have entered into an MoU to explore collaboration on advanced artificial intelligence technologies in support of the CPSP.
The partnership focuses on the joint development of AI models—including large language and multimodal models—to enhance submarine operations and shipyard efficiency, leveraging Hanwha Ocean’s domain expertise, Hanwha Systems’ defence integration capabilities, and Cohere’s secure enterprise AI technologies.
The collaboration is intended as a cooperative framework to assess potential AI-enabled applications across submarine platforms and related industrial processes, reinforcing Hanwha’s broader cross-sector industrial cooperation strategy in Canada.
Quotes:
“This partnership is a declaration of Hanwha’s commitment to becoming deeply integrated into Canada’s technology ecosystem,” “By combining Cohere’s world-class AI capabilities with Hanwha’s marine system expertise, we will ddemonstrate the potential of Made-in-Canada innovation not only for the CPSP but in the global defense market.”
Sung-chul Eoh, President of Hanwha Ocean’s Naval Ship Division
“Through this three-way collaboration with Cohere and Hanwha Ocean, Hanwha Systems is bringing together Canada’s advanced AI technologies and Korea’s proven shipbuilding and defense capabilities to develop next-generation AI models for the shipbuilding industry, spanning design, production, and operations.
As a top-tier Korean provider of mission-critical maritime solutions for nearly all classes of naval vessels, including submarines, as well as naval manned-unmanned teaming (MUM-T) and enterprise IT solutions, we will leverage this combined expertise to support Canada’s shipbuilding ecosystem and help strengthen its naval defense capabilities.”
Son Jae-il, CEO of Hanwha Systems
“We look forward to partnering with Hanwha Ocean and Hanwha Systems to integrate our cutting-edge agentic AI platform and enterprise-grade AI models–customized for shipbuilding and defence industries–into mission-critical defence applications, including the Canadian Patrol Submarine Project.” “Securely deployed AI solutions will enable real-time analysis of operational data and equipment diagnostics for effective deep-sea operations and more efficient decision making.”
Andrew Chang, VP of APAC at Cohere
Hanwha Systems-PV Labs for Advanced EO/IR Capabilities
Hanwha Systems and PV Labs have entered into a memorandum of understanding to jointly develop advanced capabilities for Electro-Optical Tactical Systems.
Under the MoU, the two companies will collaborate to enhance EO/IR sensor capabilities for broader security applications. Hanwha Systems plans to support local development, system integration, and production activities in Canada, including technology transfer to PV Labs, a Canadian leader in stabilized electro-optical imaging systems.
The products will be jointly marketed for global export markets. The partnership is expected to generate business opportunities and positive economic impacts in Canada, including skilled job creation and regional growth in communities such as Burlington, Ontario, where PV Labs is headquartered.
Quotes:
“This partnership with PV Labs represents an important step in advancing Hanwha Systems’ global EO/IR capabilities,” said Jae-il Son, a CEO of Hanwha Systems.
“By combining Hanwha Systems’ expertise in defense electronics with PV Labs’ strengths in stabilized electro-optical technologies, we aim to deliver a next-generation product that meets the evolving operational requirements of global customers, while also standing ready to contribute to Canada’s advanced industrial ecosystem through long-term investment and partnership,” he added.
Son Jae-il, CEO of Hanwha Systems
"This agreement with Hanwha Systems builds on an established relationship grounded in technical collaboration and trust. Together, we are advancing next-generation advanced tactical imaging systems based on Canadian-developed technology that meet allied operational needs, while strengthening Canada's defence industrial base, supporting high-skilled jobs, and enabling global export opportunities."
Mark Chamberlain, Founder and CEO of PV Labs
