► Hanwha expands industrial alliance with canadian companies in support of Canada’s patrol submarine project

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.

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.

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 secure Low Earth Orbit (LEO) communications, aligned with sovereign defence and security requirements.

The partnership brings together MDA Space’s next-generation AURORA™ software-defined satellite platform and Hanwha Systems’ expertise in defence electronics and space systems.

While initially focused on sovereign defence satellite capabilities, the collaboration eflects broader cross-sector technology cooperation aligned with the CPSP, including secure communications, data resilience, and command-and-control capabilities relevant to modern submarine operations.

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.

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.

About the KSS-III Canadian Patrol Submarine

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 schedul