Korea backs APMA-Hanwha partnership in Canada
The Government of the Republic of Korea has reaffirmed its commitment to fostering a partnership between Canada’s Automotive Parts Manufacturers’ Association (APMA) and Hanwha, now extended to include Algoma Steel. This message of support was delivered during a visit to Martinrea International by Presidential Special Envoy Kang Hoon-sik, 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 delegation’s visit highlighted the South Korean government’s dedication to long-term industrial collaboration with Canada, emphasizing the need to enhance sovereign manufacturing capabilities, bolster domestic supply chains, and expand defense and advanced manufacturing partnerships. These efforts encompass key sectors such as shipbuilding, defense, energy, critical minerals, automotive, advanced manufacturing, aerospace, infrastructure, and high technology.
The formal signing of the partnership agreement among APMA, Algoma, and Hanwha occurred during the envoy’s official visit, marking a significant step in the growing strategic and industrial partnership between the two nations. This agreement aligns with the Government of Canada’s requests for support from bidders of the Canadian Patrol Submarine Project (CPSP) directed towards the automotive and steel sectors. Hanwha’s commitment reflects their responsiveness to this need, bolstered by prior announcements.
Read more about the MOU to support Canadian steel and jobs
Discover the landmark joint venture between APMA and Hanwha
A Delegation Built to Deliver
The delegation’s composition is strategically significant. DAPA oversees the transfer of defense-related intellectual property and technology — crucial enablers for international defense cooperation. Meanwhile, MOTIR coordinates Korea’s industrial cooperation and economic frameworks. Having the leaders of both authorities accompany the envoy signals strong governmental support for this partnership, aimed at facilitating defense technology transfer and manufacturing collaboration.
This visit showcases the expanding scope of collaboration between Canada and Korea in defense and industrial sectors, particularly regarding the CPSP, demonstrating Korea’s commitment to a sustained partnership with Canadian industry.
During their meetings, the Korean delegation engaged with executives from APMA’s leading member companies, such as Martinrea, Magna International, Linamar, The Woodbridge Group, Exco Technologies, Court Holdings, The NARMCO Group, and Matcor-Matsu Group. Discussions focused on strategies for leveraging each company’s capabilities to enhance a local Canadian manufacturing base, in conjunction with defense technology transfer and industrial support from the Korean government. The envoy emphasized Korea’s intention to establish a durable industrial partnership with Canada.
Completing the Canadian Value Chain
The visit yielded a Memorandum of Understanding signed by APMA, Algoma Steel, and Hanwha to develop military and industrial ground platforms in Canada using Canadian defense-grade steel. This agreement successfully completes a domestic value chain, from sourcing local steel to utilizing APMA member companies in supply chains and manufacturing.
The memorandum follows the landmark joint venture agreement signed in late April 2026, where APMA and Hanwha agreed to create a Canadian-led defense manufacturing platform. This initiative aims to integrate Canadian governance with Hanwha’s expertise in land systems technology and manufacturing, promoting localized production of military vehicles for both domestic and allied markets.
The Korean government views this partnership as a pathway to enhance industrial cooperation, integrating Canadian firms into global defense supply chains. Initiatives like the APMA-Algoma-Hanwha collaboration are designed to expand opportunities for Canadian firms within international defense programs and export markets.
Delivering Value with Credibility
These partnerships reflect the broader objectives of Hanwha’s approach to the CPSP, aiming to pair credible submarine delivery plans with investments in Canadian industry. While the CPSP remains primarily a submarine acquisition program, Hanwha insists its success should also be assessed by the jobs created, the industrial capabilities built, and the opportunities generated for Canadian enterprises.
Hanwha’s proposal features a planned delivery schedule of four submarines by 2035, followed by an annual delivery of one additional submarine, completing the fleet of 12 submarines by 2043. Moreover, KPMG’s independent analysis estimates the program could support an average of over 25,000 full-time jobs annually, with a GDP impact exceeding $100 billion between 2026 and 2044.
Notably, these projections only account for the program duration and do not encompass a complete life-cycle economic evaluation of the submarine fleet. Future defense equipment manufacturing, involving APMA member companies, is also anticipated to contribute significant economic benefits, which are currently under assessment.
