South Korean Presidential Envoy pledges full government support for expanded partnership between Canada’s auto parts sector, Algoma Steel and Hanwha to advance a Build in Canada vehicle manufacturing
Press Release + Noah Note
Algoma Steel joins the landmark partnership announced in April 2026 with Canada’s Automotive Parts Manufacturers’ Association (APMA) and South Korea’s Hanwha to produce a new range of industrial and military vehicles in Canada for domestic and global markets using Canadian workers and ‘Made in Canada’ parts and steel
The Government of the Republic of Korea will actively support the APMA-Algoma-Hanwha partnership and the establishment of a Canadian entity to anchor long-term, sovereign military and industrial land vehicle manufacturing in Canada
South Korea’s Presidential Envoy discussed concrete pathways for ongoing collaboration with senior executives from APMA’s leading member companies and Algoma Steel
TORONTO, ON, June 1, 2026
Today, the Government of the Republic of Korea delivered another high-level message of support for the partnership between Canada’s Automotive Parts Manufacturers’ Association (APMA) and Hanwha, which was expanded to include Algoma Steel, as Presidential Special Envoy Kang Hoon-sik visited Martinrea International accompanied by Lee Yong-cheol, Minister of the Defense Acquisition Program Administration (DAPA), and Moon Shin-hak, Vice Minister of Trade, Industry and Resources (MOTIR)
The visit underscored the South Korean government’s commitment to supporting long-term industrial cooperation with middle powers and democracies like Canada, including efforts to build sovereign manufacturing capability, strengthen domestic supply chains, and expand defence and advanced manufacturing partnerships between the two countries across many strategic sectors, including shipbuilding, defence, energy, critical minerals, automotive, advanced manufacturing, aerospace, infrastructure and high technology.
The signing of the partnership agreement between APMA, Algoma and Hanwha took place during the official visit to Canada by the Presidential Envoy of the Republic of Korea, underscoring the growing strategic and industrial partnership between like Canada and South
The agreement further responds to the Government of Canada’s calls for Canadian Patrol Submarine Project (CPSP) bidders to support Canada’s automotive and steel sectors. South Korea and Hanwha have heard the Government of Canada and have responded in a very significant way, including these two previous announcements:
https://kss-iii.ca/hanwha-ocean-and-algoma-sign-mou-to-support-canadian-steel-and-jobs/
https://kss-iii.ca/canadas-automotive-parts-manufacturers-association-apma-and-hanwha-corporation-announce-landmark-canada-south-korea-joint-venture-to-establish-a-new-canadian-entity-that-will-pro/
A Delegation Built to Deliver
The composition of the delegation carries strategic weight. DAPA is the South Korean government authority that holds final approval over the transfer of defence-related intellectual property and technology – one of the most important enablers of international defence cooperation. MOTIR, in turn, is the ministry that coordinates Korea’s industrial cooperation and government-to-government economic frameworks. The fact that the heads of both authorities accompanied the Presidential Envoy in person signals that the two essential government-side enablers of this partnership – defence technology transfer and industrial cooperation – are being placed directly behind the agreement from the outset.
The visit also reflects the growing scope of Canada–Korea defence and industrial cooperation, including areas related to the Canadian Patrol Submarine Project (CPSP), and demonstrates the Korean government’s commitment to supporting long-term collaboration between Canadian and Korean industry.
During the visit, the Korean delegation met with the executives of APMA’s leading member companies — Martinrea, Magna International, Linamar, The Woodbridge Group, Exco Technologies, Court Holdings, The NARMCO Group and Matcor-Matsu Group — to discuss concrete pathways for cooperation.
The conversation centred on how each company’s capabilities could be mobilized into a localized Canadian manufacturing base, and on the defence technology transfer and industrial support the Korean government is prepared to place behind it. The Envoy made clear that Korea’s commitment is to a long-term industrial partnership with Canada for decades, not to a single transaction.
Completing the Canadian Value Chain
As part of the visit, APMA, Algoma Steel and Hanwha signed a Memorandum of Understanding to build military and industrial ground platforms in Canada using Canadian defence-grade steel. The arrangement completes a domestic value chain — from local steel as the raw material, through the parts supply chain of APMA’s member companies, to in-Canada manufacturing and final assembly.
The agreement follows the landmark joint venture agreement between APMA and Hanwha signed in late April 2026, under which the parties committed to establishing a Canadian-led defence manufacturing platform that would combine Canadian ownership and governance with Hanwha’s proven land systems technologies and manufacturing expertise. The partnership is intended to support localized armed-vehicle production in Canada, strengthen domestic industrial capacity, and create opportunities for Canadian automotive companies to manufacture Canada-made ground military vehicles for both domestic and allied markets.
The Korean government also sees opportunities to deepen industrial cooperation through greater integration of Canadian companies into global defence supply chains. Through partnerships such as the APMA-Algoma-Hanwha collaboration, Korea will seek to support pathways for capable Canadian firms to participate in future international defence programs and export opportunities, helping Canadian companies expand their presence in allied and global markets.
Delivering Value with Credibility
These partnerships reflect Hanwha’s broader CPSP approach: pairing a credible submarine delivery plan with long-term investment in Canadian industry. While CPSP is ultimately a submarine program, Hanwha believes its success should also be measured by the jobs created, industrial capabilities developed, and opportunities generated for Canadian companies across the country.
Hanwha’s proposal offers a clear and credible delivery pathway, with four submarines delivered by 2035, followed by one submarine per year thereafter and the full fleet of 12 submarines delivered by 2043. Beyond delivery, independent analysis conducted by KPMG estimates the program could support an average of over 25,000 full-time jobs annually and generate more than $100 billion in GDP impact between 2026 and 2044.
Importantly, these figures reflect only the program period and do not represent a full life-cycle economic assessment of the submarine fleet. They also exclude the potential economic impact of future defence equipment manufacturing involving APMA member companies, which is currently being assessed.
Quotes
“This partnership is significant because it seeks to establish a complete Canadian supply chain — from raw materials and components to final vehicle production — entirely within Canada. The Korean government expects this collaboration to contribute meaningfully to Canada’s industrial sovereignty, economic resilience, national security, and job creation. More importantly, it reflects a model of cooperation between Canada and Korea that goes beyond a traditional buyer-supplier relationship. It is a partnership built on shared growth, industrial collaboration, and a long-term commitment to creating a sustainable industrial ecosystem together.”
Kang Hoon-sik, Republic of Korea Presidential Special Envoy, Chief of Staff to the President
“Hanwha will work closely with APMA and Algoma to help build a sustainable defence industrial ecosystem rooted in Canadian companies, technologies, and talent. Together, we can develop technologies and strengthen the industrial base. We have invited APMA members and Algoma to Korea to discuss future plans and practical ways to move forward, including transfer of IP and technologies, as well as workforce development.”
Dong Kwan Kim, Vice Chairman of Hanwha Group
“Today the Presidential Envoy of Korea sat across the table from the leaders of our member companies — and came with Korea’s defence and industrial authorities at his side. That sends a powerful signal that the Korean government is serious about building real, lasting capability here in Canada, with Canadian companies. Our members came ready to discuss practical opportunities, and they are ready to help build the next generation of Canadian defence manufacturing.”
Flavio Volpe, President, Automotive Parts Manufacturers’ Association (APMA)
“Algoma Steel is proud to participate in this project to strengthen Canadian industrial capability and support domestic manufacturing opportunities tied to future defence and industrial programs like CPSP. Our advanced steelmaking platform and domestic plate production capabilities position us well to contribute to resilient Canadian supply chains and sovereign industrial development.”
Rajat Marwah, Chief Executive Officer, Algoma Steel
“We were proud to host the Korean delegation at Martinrea today. This is what the future of Canadian manufacturing looks like — Canadian companies, Canadian workers and trusted allied partners building advanced capability here at home. Martinrea is ready to play its part.”
Rob Wildeboer, Executive Chairman, Martinrea International
“This agreement reflects Hanwha Ocean’s broader commitment to supporting Canada’s long-term industrial and economic objectives beyond submarine procurement itself. We believe CPSP can become a catalyst for establishing enduring industrial partnerships, localized manufacturing, sovereign supply chains and long-term industrial capability that strengthen Canada’s defence industrial base for decades to come.”
Steve SK Jeong, SEVP, Head of Naval Ship International Business, Hanwha Ocean
About Automotive Parts Manufacturers’ Association (APMA) (www.apma.ca/a>)
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 Algoma Steel (Algoma.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 Hanwha Group (www.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 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.
The KSS-III is the world’s first diesel-electric submarine class to integrate both Air Independent Propulsion (AIP) technology and lithium-ion battery systems, enabling exceptional submerged endurance and operational flexibility. The platform also incorporates advanced acoustic quieting technologies designed to minimize underwater radiated noise, alongside a highly capable combat system architecture able to deploy a broad range of weapons systems, including torpedoes and cruise missiles.
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: This isn't really a surprise to anyone watching. Hanwha has teased doing more with Algoma from the moment they announced their partnership. It has always been one of their easy money partners. The Feds love Algoma, want it supported, and it is generally easy for a comoany like Hanwha to do that, especially making vehicles.
Hanwha is planning for this facility to operate independent of any Canadian orders. They see it as a facility tied into support and export abroad, and as such are not as concerned with promoting themselves for Land Projects, however, it wouldnt be amiss to them that for projects like MCAV, where GDLS is seen is the background and on a weaker standing, that having this facility is a major advantage.
Either way, this is an easy win for them. It costs almost nothing but makes a big point in their bid package. Thats the best kind of partnerships to have.