Hanwha Expands Industrial Alliance with Canadian Companies in Support of Canada’s Patrol Submarine Project
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.
January 26, 2026, Toronto, Ontario, Canada
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
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, 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. Hanwha Ocean’s shipyard spans 5-square kilometers, employs around 31,000 people, and builds approximately 45 commercial and naval ships each year.
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.
About Hanwha Systems (www.hanwhasystems.com)
Hanwha Systems is a leading South Korean defence and ICT company specializing in advanced radar, command and control, satellite, and defence electronics solutions. Leveraging strong systems integration capabilities and cutting-edge technologies, the company supports national security and global defence programs across land, sea, air, cyber, and space domains.
About Algoma Steel (www.AlgomaSteel.com)
Based in Sault Ste. Marie, Ontario, Algoma Steel is a leading Canadian producer of high-quality plate and sheet steel products, proudly supporting critical sectors including energy, defense, automotive, shipbuilding, and infrastructure. Guided by a purpose to build better lives and a greener future, Algoma is shaping the next generation of sustainable steelmaking in Canada.
With the transition to electric arc furnace (EAF) steelmaking and a modernized plate mill, Algoma is redefining how steel is made in Canada. Powered by Ontario’s clean electricity grid, this transformation represents one of the largest industrial decarbonization initiatives in North America and is expected to reduce carbon emissions by approximately 70% once fully transitioned. These advancements provide stability for continued investment in diversification projects aligned with Canada’s evolving needs.
About Cohere (www.Cohere.com)
Cohere is the leading security-first enterprise AI company, co-headquartered in Toronto and San Francisco, with additional offices in London, New York, Montreal, Paris, and Seoul. It builds cutting-edge foundation models and end-to-end AI products designed to solve real-world business problems. Cohere partners closely with companies to deliver seamless integration, full customization, and easy-to-use solutions for their workforce and customers. The all-in-one platform offers enterprises the highest levels of security, data privacy and optionality to deploy across all major cloud providers, private cloud environments, or on-premises.
About MDA Space (www.MDA.space)
Headquartered in Brampton, Ontario, MDA Space is a trusted mission partner to the global space industry. A robotics, satellite systems and geointelligence pioneer with a 55-year+ story of world firsts and more than 450 missions, MDA Space is a global leader in communications satellites, Earth and space observation, and space exploration and infrastructure. MDA Space dual-use technology is operational on nearly all LEO and MEO communications satellite constellations today.
About PV Labs (www.PV-Labs.com)
Headquartered in Burlington, Ontario, PV Labs is an established designer and developer of aerial imaging systems used for Intelligence, Surveillance, & Reconnaissance (ISR) applications within various levels of governments and military.
About Telesat (www.Telesat.com)
Telesat is a leading global satellite operator providing reliable, secure satellite-delivered communications solutions worldwide to broadcast, telecom, corporate and government customers. Headquartered in Ottawa, Canada, with offices and facilities around the world, Telesat’s state-of-the-art fleet and next-generation Low Earth Orbit (LEO) network deliver ultra-low latency, high-capacity connectivity for critical broadband, mobility and defence markets.
Hanwha Canadian Partners
Hanwha is committed to establishing a robust and long-term presence in Canada that will create jobs and economic growth in a variety of strategic industrial areas, 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, MOUs and contracts in place with more than a dozen Canadian companies, including Babcock Canada, Blackberry, CAE, Curtiss-Wright Indal Technologies, Des Nedhe Group, Gastops, J Squared Technologies, L3Harris Canada, ModestTree and PCL Construction, and has entered into contracts with two Canadian firms, Modest Tree and Hepburn Engineering.
The Teaming Agreement with CAE (Montreal, Quebec) is related to integrated training solutions and critical operations support solutions.
Under the Teaming Agreement, Babcock Canada (Ottawa, Ontario, Vancouver and Victoria, British Columbia, and Halifax, Nova Scotia) becomes the exclusive In-Service Support partner that will support Hanwha Ocean on CPSP.
The MOU with BlackBerry (Waterloo, Ontario) is related to their secure communications product portfolio and embedded software solutions.
The MOU with Curtis-Wright Indal Technologies (Mississauga, Ontario) is related to towed array handling and winch system.
The MOU with Des Nedhe Group (Saskatoon, Saskatchewan) is related to economic sustainability.
The MOU with Gastops (Ottawa, Ontario) is related to propulsion systems machinery control, modelling and simulation.
The MOU with J Squared Technologies (Ottawa, Ontario) is related to critical capabilities for sea platforms.
The MOU with L3Harris Canada (Ottawa, Ontario) is related to their integrated platform management system, integrated communications system, steering diving & control system, and other L3Harris maritime capabilities.
The MOU with Modest Tree (Halifax, Nova Scotia) is related to immersive training and digital in-service support solutions.
The MOU with PCL Construction (Edmonton, Alberta) is related to construction of infrastructure.
Excellent analysis. The focus on job creation is compeling, and the integration of advanced AI into national defense strategies presents interesting long-term technology governance challenges.