Canada’s Automotive Parts Manufacturers’ Association (APMA) and Hanwha Corporation announce landmark joint venture to establish a new Canadian entity that will produce military and industrial vehicle
Press Release + Long Noah Note
April 29, 2026
TORONTO – Canada’s Automotive Parts Manufacturers’ Association (APMA) and Hanwha Corporation today announced a landmark joint venture to establish a new Canadian entity with full capabilities to produce non-commercial industrial vehicles for Canada as well as heavy military vehicles for domestic and global markets.
The new range of vehicles will be fully produced in Canada by Canadian workers with ‘Made in Canada’ parts and materials, including steel and aluminum. The venture, which is fully contingent on Hanwha’s KSS-III being selected for the Canadian Patrol Submarine Project (CPSP), will protect and create tens of thousands of automotive sector jobs for Canadians while establishing a domestic production capability to supply non-commercial industrial vehicles, including military vehicles, in Canada and globally.
This joint venture between APMA and Hanwha would feature Canadian majority ownership and board membership, and the CEO will be Canadian. This initiative supports and advances the “Build in Canada” pillar of Canada’s recently released Defence Industrial Strategy (DIS) and will provide the country with an ability to produce its own defence equipment enabling the conditions that directly benefit domestic industry and ensure Canadian sovereign control; create quality jobs and economic benefits for all Canadians; and increase the share of defence acquisitions awarded to Canadian firms.
APMA and Hanwha will work together to establish a sovereign Canadian automotive business unit that would be focused exclusively on the design and production of non-commercial, industrial vehicles, including heavy axle and special purpose vehicles, for use by the Canadian Armed Forces, federal, provincial and municipal government departments and agencies, emergency services, and Arctic and Crown resource-sector operations, providing a world class fleet of vehicles with the ability to export to allied-nations.
As part of the joint venture, should the KSS-III submarine be selected for CPSP, the APMA and Hanwha will establish production capabilities in Canada for the following military vehicles:
K9 Thunder Self-propelled Howitzer and K10 Ammunition Resupply Vehicle
Redback Infantry Fighting Vehicle
Chunmoo Multiple Launch Rocket System
Uncrewed Ground Vehicles
Quotes
“This joint venture will deliver on the Prime Minister’s challenge to Canada’s automotive sector to help drive the country’s unprecedented commitment to national defence. This partnership, should Hanwha’s KSS-III submarine be selected for the Canadian Patrol Submarine Project, will be tremendous for Canada’s automotive sector. The APMA is proud to extend our full support to South Korea’s bid and broader industrial opportunities it presents for Canada.”
Flavio Volpe, President, Automotive Parts Manufacturers’ Association
“Canada brings world-class advanced manufacturing and highly skilled talent pools and APMA has long stood at the center of Canada’s manufacturing leadership and innovation. We believe that when Canada’s industrial capability is combined with Hanwha’s technology and manufacturing experience, we could accomplish a new model of cooperation that goes beyond mere procurements.”
Son Jae-il, CEO, Hanwha Aerospace
“Today’s agreement is a historic commitment to shaping the future of Canada’s defence industry together. Perfectly aligned with the Government of Canada’s ‘Build in Canada’ principle and Defence Industrial Strategy (DIS), this is more than a submarine contract — it is Hanwha’s promise to strengthen Canada’s industrial capacity and economic sovereignty.”
Steve SK Jeong, SEVP, Head of Naval Ship International Business, Hanwha Ocean
About Automotive Parts Manufacturers’ Association (APMA) (www.apma.ca)
The Automotive Parts Manufacturers’ Association (APMA) represents Canada’s OEM suppliers to the global automotive sector, specializing in volume parts, tooling, automation, software (including AI and machine learning), advanced materials, critical minerals and EV battery technology. Since 1952, the APMA has been at the forefront of promoting Canada’s automotive manufacturing industry both domestically and internationally, supporting OEM suppliers as they lead innovations in an evolving global marketplace.
About Hanwha Group (hanwha.com/)
Hanwha, a Fortune 500 company with more than 100,000 employees and 91 subsidiaries globally, is South Korea’s seventh-largest business group, with innovative businesses in the areas of aerospace & mechatronics, clean energy & ocean solutions, finance, and retail & services. We are a multinational company with a robust global network of affiliates, which allows us to leverage synergy to deliver transformative solutions and impactful innovations that catalyze sustainable growth across industries and communities. With strong fundamentals in core industries, we enhance lives through our technologies, products, and services.
About Hanwha Ocean (www.hanwhaocean.com/en)
Hanwha Ocean is a leading global shipbuilder with more than four decades of experience in complex naval and commercial shipbuilding programs. Supported by its large-scale, integrated shipyard in Geoje, South Korea that spans 5-square kilometers and has more than 31,000 employees, the company combines proven industrial capacity with operational experience to deliver modern, in-service naval platforms backed by a resilient through-life support model.Since its establishment in 1973, Hanwha Ocean has delivered more than 1,400 vessels worldwide and has built deep expertise in the design, construction and sustainment of submarines and surface combatants for the Republic of Korea Navy. The company builds approximately 45 commercial and naval ships each year.
About Hanwha Aerospace (hanwhaaerospace.com)
Hanwha Aerospace is a leading provider of advanced defence, aerospace, and industrial solutions with a global footprint across Asia, Europe, the Middle East, and the Americas. Its portfolio covers land, sea, air, and space domains, including artillery systems, armored vehicles, precision-guided munitions, aircraft engines, satellites, and space launch technologies. As a core affiliate of Hanwha Group, Hanwha Aerospace is dedicated to strengthening global partnerships through localization, co-production, and technology transfer.
About the KSS-III Canadian Patrol Submarine (www.KSS-III.ca)
Hanwha Ocean’s KSS-III is a proven, in-service, in-active production submarine that fully meets and exceeds all requirements for the Canadian Patrol Submarine Project (CPSP). These include superior underwater surveillance capability and deployability in the Arctic with extended range and endurance that will provide stealth, persistence and lethality to ensure that Canada can detect, track, deter and, if necessary, defeat adversaries in all 3 of its oceans.
Importantly, Hanwha Ocean has the fastest delivery schedule, able to deliver four KSS-III submarines to fully replace Canada’s current Victoria Class fleet before 2035 if on contract in 2026. Earlier retirement of the Victoria Class fleet will result in estimated savings of approximately $1 Billion on maintenance and support costs. The additional 8 submarines will be delivered at a rate of one per year, meaning the entire fleet of 12 submarines will be delivered to Canada by 2043. No other option can come anywhere close to this delivery schedule.
Noah Note: Well, after I said yesterday that I didn't think thing could get much more surprising, Hanwha proves me wrong by breaking the emergency glass and throwing their full roster into the rings.
Of course the announcement on it's own is fairly bare of details, however, if you are a longtime follower of TNSR than this will actually be a bit of deja vu, because this isnt the first time Hanwha has mentioned this.
That proposal was actually three separate packages, each designed to build off one another as part of a comprehensive offering to Canada, the last of which would see the establishment of a Hanwha manufacturing center in Canada to produce an array of ground vehicles domestically.
For those who wamt the quick rundown, I made a little chart.
Of course this proposal has shifted in the last year, and the original intent was reliant on Hanwha winning competitions like Indirect Fires Modernization. We now see a bit of a shift, with Hanwha positioning a potential Canadian facility with or without securing an army contract.
The facility would be based off of Hanwha’s Armoured Vehicle Centre of Excellence, often referred to as H-ACE, in Geelong, Australia. That facility peoduces both the K9, K10, and now the Redback.
That alone makes the situation far more interesting, with Hanwha seemingly ready to jump in beyond the usual catalogue and into manufacturing a range of vehicles, including potnetially things like Class 8 Trucks for civil and military uses.
Of course, we do have a MSVS replacement on the cards, so maybe this isnt as out there as I would usually joke. Of course the position here, if I can guess? Is to leverage the old Doosan DST catalogue of vehicles domestically in Canada. At least at the start.
Of course Automotive manufacturing has been one of the major asks of the federal government, in fact we were the first Canadian outlet to report it! We actually talked about it a lot. It has been one of the major demands of certain forces in cabinet (primarily Joly and Champagne as I know) to see automotive tied into the CPSP bids.
This, of course, seems to be the major consuquence of that. While both TKMS and Hanwha, along with their respective governments, put the pressure on the likes of Hyundai Motors and Volkswagen to make commitments, both sides proved heavily hesitant to any sort of additional Canadian investments.
Hyundai eventually agreed to working on Hydrogen development, including for commercial platforms, and Volkswagen has remained open to additional investments in PowerCo, though they aint in the best position.
So this seems to be a consuquence of that. I should also note that today is the final day for both Hanwha and TKMS to submit their revised bids. Both sides we're given an extension to allow them to address potential issues and clarifications that the government raised, as well as to “take into account the new Defence Industrial Strategy”
So there was an extreme amount of pressure put on everyone to really cement people down. That doesn't mean we won't have announcements still, almost certainly we will. However there is incentive to have things out there quick and early.
Keeping in mind yesterday's announcements, it is fairly safe to say that Hanwha is also looking to heavily position Chunmoo deapite the Canadian Army moving to contract on HIMARS. The official message is that this is tied to third-party export, however, I always make note that Hanwha is still campaigning Chunmoo as an option for the CAF, and rumors are there is still some interest in Chunmoo as a low to the HIMARS high, and while I don't really believe the army is thinking that, it still is fun to talk about.
Also interesting here is the K9. Previously, one of the major advantages for General Dynamics was that it was the only locally produced option available domestically with the LAV 10x10 and RCH module. Adding on a potential local K9 production capacity, which again Hanwha is seemingly focusing narratively as an export facility over being tied to Canadian contracts, shifts that narrative a bit, especially if they're pulling in a Canadian-supplied chassis.
Of course I still think the LAV 10x10 is the want, and the heavy favorite even with this. The Canadian Army evidently wants their future howitzer on a LAV chassis, at least from what I gauge. There is a heavy desire for that commonality in the supply chain and for a vehicle with the protection levels of the LAV.
I don't think that changes with this. Certainly I don't think the Canadian Army will suddenly find a love of tracked SPH, however it does make the competiton a bit more interesting, dependent of course on how this facility looks. Maybe I'll ask for more details on the plans. That would be cool.
So, this is interesting. No doubt. Does it change plans and expectations? Not at this moment, no. I don't think it will until there is more development. Yes, I know LGen Wright spoke on K9 recently and was friendly. I don't think hes positioning K9 as a leader. I think he was just being very nice and friendly.
Either way, a major development, and likely to satisfy at least a few of the Automotive cliques desires for new automotive manufacturing in Ontario. Will it fully? I don't think so, but they'll likely take it as better than nothing considering almost all the other major players in both Korea and Germany are silent.
Time will tell.
Could someone explain why CAF wants LAV 10x10 with RCH, or at least link an article that explains their current wants? Noah mentioned them wanting the protection level of the LAV platform; is that greater or less than the K9? I don't actually know a ton about mobile artillery, but I assume they reduce the armour to compensate for the weight of the gun, and the fact they are supposed to be behind the front line, not on it. I thought that we were looking at tracked IFV to increase their usability in the artic, as a apposed to the wheeled LAVs, so I'm surprised that they would prefer a wheeled artillery platform over a tracked one.
If K-9 was to be built here for export, I could see our military opting for a split fleet of tracked K-9 and K-10 with the possibility of also procuring some hybrid LAV chassis/K9 gun systems/loaders wouldn't be difficult to ship LAV chassis to the K-9 factory for modifications especially if it's set up in Ontario. Just a thought.