From Weapons to Sustainment: Canada’s Undersea Capability Takes Shape Through New LIG-Magellan-Hanwha Partnership

Press Release + Noah Note

April 28, 2026, Montreal, Quebec

A key piece of Canada’s future submarine capability is beginning to take shape through the establishment of in-country capacity for critical systems, reinforcing long-term operational readiness and industrial resilience.

LIG Defense & Aerospace (D&A), Magellan Aerospace Corporation (Magellan), and Hanwha Ocean have signed a Memorandum of Understanding to seek collaboration under the Canadian Patrol Submarine Project (CPSP), with a focus on strengthening Canada-based capabilities across underwater weapon systems and their lifecycle support.

At the center of the partnership is the integration of LIG D&A’s advanced weapon capabilities with Magellan Aerospace’s precision manufacturing expertise in Canada. LIG D&A has played a central role in advancing South Korea’s indigenous undersea defence capabilities, beginning with the successful development and deployment of the country’s first domestically produced Heavy Weight Torpedo, Baeksang-eo. Building on this foundation, LIG has continued to innovate, developing next-generation systems such as the Tiger Shark Heavy Weight Torpedo, featuring fiber-optic guided control and advanced wake-homing capabilities, which has been fully integrated into the latest KSS-III submarines. In addition to Torpedoes, LIG produces a range of advanced naval weapon systems, including Mobile Mines and Submarine-Launched Cruise Missiles (SLCM), Torpedo Counter Measure supplying critical capabilities to the Republic of Korea Navy. The collaboration is aimed at enabling in-country capacity for the assembly and production of key submarine weapon systems.

“LIG brings a level of proven capability in underwater weapon systems that is not widely available in the global market,” said Haydn Martin, Vice President, Business Development, Marketing and Contracts at Magellan. “Partnering on that foundation creates a real opportunity to establish advanced manufacturing and sustainment capacity in Canada – moving critical capabilities closer to home and strengthening long-term operational readiness.”

Building on this foundation, LIG D&A and Magellan are exploring a phased approach to industrial cooperation in Canada, including the assembly and production of munitions and unmanned systems, followed by the expansion of local sourcing and component manufacturing to support in-country maintenance, repair, and overhaul (MRO) requirements. Over time, this cooperation is expected to extend to the export of assembled systems to third markets. In parallel, the parties are reviewing collaboration on propulsion systems for 70mm guided rockets, with potential expansion into broader solid rocket motor (SRM) applications—including 130mm and 140mm systems—as part of a longer-term effort to diversify and strengthen Canada’s defence supply chain.

This approach reflects a shift from externally dependent acquisition toward a more localized model of capability – one that brings together production, system integration, and in-service support within Canada. By anchoring these functions domestically, the partnership is expected to enhance supply chain resilience while supporting the sustained operation of Canada’s future submarine fleet.

The collaboration also builds on earlier agreements between Hanwha Ocean and LIG D&A across underwater systems and sonar-related capabilities, forming a broader, integrated approach to undersea warfare systems development in Canada. This includes ongoing discussions and cooperation on the potential localization of Torpedo Counter Measure systems and related technologies in collaboration with global partners, reflecting an early move toward in-country production and sustainment.

With Magellan Aerospace’s established presence in advanced manufacturing and defence production, the partnership provides a pathway to expand beyond final assembly toward component-level manufacturing over time – supporting greater participation of Canadian industry and reinforcing the long-term sustainment base required for complex naval systems.

The agreement highlights how international collaboration is increasingly being structured around building enduring capability in Canada – particularly in areas that have traditionally remained outside domestic control, such as weapon systems and their lifecycle support.

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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.

Equipped with Lithium-ion batteries and an Air Independent Propulsion (AIP) system, the KSS-III offers the longest submerged endurance among any conventional submarine – exceeding 7,000 nautical miles. It is outfitted with both a state-of-the-art sonar system and acoustic tiles, offering outstanding target detection capability and advanced stealth performance. The platform is fully optimized for Anti-Submarine Warfare, Anti-Surface Warfare, Intelligence, Surveillance and Reconnaissance (ISR), Minelaying, and Special Operations Forces (SOF) support.

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.

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About Magellan Aerospace Corporation (www.Magellan.aero)

Magellan Aerospace Corporation is a global aerospace company that provides complex assemblies and systems solutions to aircraft and engine manufacturers, and defence and space agencies worldwide. Magellan designs and manufactures aeroengine and aerostructure assemblies and components for aerospace markets, advanced proprietary products for military and space markets, and provides engine and component repair and overhaul services worldwide. Magellan is a public company whose shares trade on the Toronto Stock Exchange (TSX: MAL), with operating units throughout North America, Europe, and India.

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About Hanwha Ocean (www.HanwhaOcean.com)

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.

Hanwha Group, a Fortune 500 company with more than 100,000 employees and 91 subsidiaries globally, is the Republic of Korea’s leading defence company. Other Hanwha business areas include aerospace and mechatronics, energy and ocean solutions, finance, and retail and services.

Hanwha is committed to establishing a robust and long-term presence in Canada in several strategic areas that will create jobs and economic growth, accelerate Canada’s domestic defence capabilities, and enhance cooperation, partnership and supply chains between Canada and South Korea – a relationship that is becoming increasingly important, and one that supports the objectives of Canada’s Indo-Pacific Strategy.

Hanwha has teaming agreements and MOUs in place with more than 30 Canadian companies.

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Noah Note: Magellan joins the CAE and Cohere club of being an official partner to both potential suppliers, and Canada’s seemingly designated champion of torpedo production. Intersting here is the memtion of munition and uncrewedsystem production.

LIG NEX1 has been working hard to expand into the Uncrewed domain, especially this year. The company showed off their new G-Sword unmanned ground vehicle at ADEX 2025 in October. They also showed off a host of conceptual uncrewed aerial vehicles this year at DSK 2026, including their new Medium-sized Unmanned Common Platform and small reconnaissance and strike combined drone (MPD). Most recently the company has signed a new framework agreement with Honeywell to explore collaboration on uncrewed systems

Of course this is an MOU, and outside torpedoes I wouldn't say theres any commitment to much else here. There is lots of hype, and I will launch if thr Koreans are the ones to get a CRV-7 revival going. Take note also on the additional memtion of 130mm and 140mm rockets. Also take note of recent rumors on Chunmoo being discussed as a complement to our order of HIMARS. I don't believe that, but man, does this kind of teasing make for some fun scenarios in your head.

Sadly for all you missile nerds, no Hyunmoo mentioned, not fully at least though Hanwha has been teasing it a bit more lately. Mention of Mobile Mines and Torpedo countermeasures are far more realistic and grounded to the current reality, so they also take the spotlight.

Overall a very different kind of agreement, with a phased approach to the partnership. That isnt bad mind you, and not to terribly uncommon. It just hasn't really popped up with CPSP at all. That always makes stuff a bit more interesting. Overall, a significant agreement even if only an MOU, and im sure it will get a lot of minds running for what the future of such an agreement could look like.

Haeseong-III got mentioned though! That's kind cool right? The person here who really likes M-SAM and L-SAM is probably also teally excited tight now. Get hyped oomfy. Maybe your day is yet to come.