Hanwha’s Montreal Partnerships Advance Canada’s Submarine Capability at Home
Press Release + Noah Note
April 28, 2026, Montreal, Quebec
As Canada sharpens its focus on defence industrial capability and long-term operational sovereignty, the partnerships advanced at Hanwha Ocean’s CPSP Partners Day in Montreal point to a broader shift underway—one that positions the Canadian Patrol Submarine Project (CPSP) not simply as a procurement, but as a platform for building enduring industrial capability in Canada.
At the center of this shift is a growing recognition that future submarine capability will depend not only on the acquisition of platforms, but on Canada’s ability to produce, integrate, sustain, and upgrade them in-country over the long term. The agreements brought forward in Montreal reflect a deliberate effort to localize critical elements of that capability across advanced manufacturing, key systems and components, engineering and testing infrastructure, digital engineering and lifecycle management, and long-term in-service support (ISS), strengthening in-country capability, supply chain resilience, and industrial participation in line with the priorities of Canada’s Defence Industrial Strategy (DIS).
Held at Le Windsor Ballroom, CPSP Partners Day brought together organizations from across Canada’s defence, aerospace, advanced manufacturing, and research sectors, with participation from government, industry, and academia. The event was attended by Christopher Skeete, Québec’s Minister of International Relations and La Francophonie; Kim Lim, Ambassador of the Republic of Korea to Canada; Hubert Bolduc, President of Investissement Québec International; and Claude Pinard, Chair of the Executive Committee of the City of Montreal. Within that setting, Hanwha Ocean advanced a series of Memoranda of Understanding (MOUs) and Teaming Agreements (TAs), providing a clearer picture of the industrial architecture being assembled around CPSP.
The agreements announced span key elements of submarine capability, digital engineering, and supply chain development:
Hanwha Ocean – Velan (MOU)
Advancing in-country sourcing and industrial cooperation for critical submarine valve systems, reinforcing Canadian production of high-spec naval components
Hanwha Ocean – LIG Defense & Aerospace – AtkinsRéalis (Teaming Agreement)
Collaborating on the development of sovereign defence infrastructure in Canada, including acoustic testing facilities to support submarine systems, sustainment, and industrial participation
Hanwha Ocean – Dassault Systèmes Canada (Teaming Agreement)
Supporting the development of in-country capabilities in submarine design, engineering, and product lifecycle management (PLM), including digital engineering environments
Hanwha Ocean – Kolon Spaceworks – Spartec Composites (Teaming Agreement)
Establishing a localized composite supply chain and advancing technical collaboration to support submarine composite structures and advanced materials manufacturing in Canada
Hanwha Ocean – Thordon Bearings (MOU)
Advancing collaboration on marine bearing and propulsion system components, supporting in-country capability development for critical submarine subsystems and lifecycle sustainment
Together, these partnerships reflect a coordinated effort to establish a Canadian-based industrial ecosystem spanning advanced manufacturing, digital engineering, systems integration, and long-term sustainment.
Among the agreements, the collaboration with Kolon Spaceworks, Spartec Composites, and Thordon Bearings points to the early formation of a Canadian-based supply chain for advanced materials, while the MOU with Velan underscores the importance of securing domestic capability in mission-critical components that underpin both safety and long-term sustainment.
Beyond components, the partnership with LIG Defense & Aerospace and AtkinsRéalis signals a broader shift toward integrating engineering, infrastructure, and system-level capability from the outset. The development of acoustic testing facilities and weapon-related infrastructure provides a pathway toward establishing sovereign in-service support (ISS) capability in Canada, reinforcing long-term operational readiness and industrial resilience.
The collaboration with Dassault Systèmes Canada further highlights the role of digital capability as a differentiator. By advancing in-country capabilities in design, simulation, and product lifecycle management, the partnership enables Canada not only to maintain submarine platforms, but also to participate in their continuous evolution and modernization.
What is taking shape through the Montreal partnerships is not a series of agreements, but the outline of a Canadian industrial ecosystem built to sustain capability over the long term.
Building on earlier engagements in Ottawa, Calgary, and Toronto, this latest phase of collaboration further aligns international capability with Canada’s industrial priorities, particularly across Québec’s engineering, aerospace, and advanced manufacturing sectors.
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.
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.
About AtkinsRéalis (www.AtkinsRealis.com)
Created by the integration of long-standing organizations dating back to 1911, AtkinsRéalis is a world-class engineering services and nuclear company dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, data and technology to transform the world’s infrastructure and energy systems. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital. The breadth and depth of our capabilities are delivered to clients in strategic sectors such as Engineering Services, Nuclear and Capital.
News and information are available at www.atkinsrealis.com or follow us on LinkedIn.
About Dassault Systèmes Canada (www.3ds.com)
Dassault Systèmes is a catalyst for human progress. Since 1981, the company has pioneered virtual worlds to improve real life for consumers, patients and citizens. Through the 3DEXPERIENCE platform, AI-powered, science-based virtual twins help 390,000 customers of all sizes, in all industries, collaborate, imagine and create sustainable innovations that drive meaningful impact.
About About Kolon Spaceworks (www.kolon.com)
Kolon Spaceworks is a Korean advanced composite materials company specializing in ultra-light, ultra-strong, and ultra-high-temperature composite products that maximize the performance of mobility, aviation, and defence weapon systems. Established in 2024 through the integration of the Kolon Group’s composite materials businesses—including Kolon DACC Composite, Kolon Glotech, and Kolon ENP—the company brings together more than two decades of composite manufacturing expertise.
Kolon Spaceworks supplies composite parts and modules for aerospace, defence, naval, and urban mobility applications, including submarine composite structures, missile components, space launch vehicle propulsion components, and advanced mobility platforms. Backed by the Kolon Group’s integrated supply chain—spanning epoxy resins, aramid fibres, and other advanced raw materials—Kolon Spaceworks is positioned as a global supplier of high-performance composite solutions.
About LIG Defense & Aerospace (www.lignex1.com)
LIG Defense & Aerospace (LIG D&A), formerly LIG Nex1, is a leading South Korean defence and aerospace company headquartered in Yongin, Republic of Korea. Founded in 1976 and rebranded in 2026 to mark its 50th anniversary, LIG D&A develops and produces a broad range of advanced precision systems for the Republic of Korea Armed Forces and global customers, including guided missiles, underwater weapon systems, naval combat systems, radars, electronic warfare, avionics, tactical communications, fire control, and electro-optics.
The company has delivered key systems for the Republic of Korea Navy, including the Cheongung surface-to-air missile family, the Haesong (C-Star) anti-ship missile, the Red Shark anti-submarine guided missile, lightweight torpedoes, and integrated naval combat systems deployed on Korean surface combatants and submarines, including the KSS-III class. Building on five decades of indigenous development and mass production, LIG D&A is expanding into space technology, next-generation defence systems, and global partnerships in support of allied capability and industrial cooperation.
About Spartec Composites (www.sparteccomposites.com)
Spartec Composites is a Canadian manufacturer specializing in the design and manufacture of advanced composite and metallic components, with more than 40 years of experience serving clients across Canada and the United States. Operating from multiple facilities in Ontario, Spartec delivers full-service capability spanning engineering, tooling, kit cutting, prepreg lay-up, autoclave curing, resin infusion, robotic trimming, and quality assurance.
Spartec serves the defence, aerospace, transportation, and industrial sectors and has been registered under the Canadian Controlled Goods Program since 2008, with compliance to NIST SP 800-171 / DFARS 252.204-7012 cybersecurity requirements. The company’s technical expertise, combined with ongoing investments in automation and robotic technology, supports Canadian content delivery for complex defence and naval programs.
About Thordon Bearings (www.thordonbearings.com)
Thordon Bearings Inc. is a global leader in high-performance, pollution-free bearing and seal systems for the marine, clean energy, and industrial sectors. Headquartered in Burlington, Ontario, Canada, Thordon operates an international distribution network and delivers proven solutions that eliminate oil and grease from critical rotating equipment.
About Velan (www.velan.com/en)
Founded in Montreal in 1950, Velan Inc. is one of the world’s leading manufacturers of industrial valves. The Company is headquartered in Montreal, Canada and operates manufacturing plants in 9 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.
Noah Note: The cap in todays string of partnerships, with a heavy focus on Montreal. Big players here in Velan and Thordon enter the race. You can get the feel that Hanwha wants to almost prove that they're commited to a Canadian supply chain, with how they're trying to quickly building up a critical suppliers pool.
Another notable thing is that Hanwha is starting to shift from a primarily MOU-based team to a more healthy mix of MOU and more locked Teaming Agreements. For a long time Hanwha had a notable focus on roster building, the art of padding a project with a large number of potential suppliers oftentimes strung together with relatively simple and non-legally binding MOU.
It's a viable strategy, and a common one. The shift to proper Teaming Agreements is normal as a project progresses and details/agreements get ironed out and commited to by both parties. Build a team quick and then iron out later. Often times only that first MOU matters to create the narrative and build the bid.
Either way Hanwha’s focus now seems to be for the ‘What's Next?” partners, the suppliers of the supply chain, the second and third tier partners that oftentimes get forgotten or left to the side until the last minute or after a contract is awarded. Of course that's a bit dismissive when we're talking the likes of Velan lol.
However, you get the point. It's not about the company itself, but the concept. Either way, today saw several new partnerships between Hanwha and Canadian industry. That might be a new one day record?