Hanwha-Algoma Steel MoU.
Hanwha Canadian Patrol Submarine Project (CPSP): Toronto, January 26, 2026 — South Korean defence and industrial conglomerate Hanwha has significantly expanded its industrial footprint in Canada, announcing a series of strategic partnerships with leading Canadian companies to support the Canadian Patrol Submarine Project (CPSP).
Hanwha signed multiple Memorandums of Understanding (MOUs) with Algoma Steel, Telesat, MDA Space, Cohere and PV Labs, creating a cross-sector industrial cooperation framework spanning steel manufacturing, space and satellite communications, artificial intelligence, and advanced sensing technologies. The agreements were signed on the sidelines of a visit to Toronto by a South Korean government and business delegation led by the Republic of Korea’s Presidential Chief of Staff.
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The partnerships underscore Hanwha’s long-term commitment to Canada’s industrial development, job creation and defence self-reliance, aligning with broader nation-building priorities. A recent KPMG analysis estimates that Hanwha-led industrial cooperation linked to the CPSP could support approximately 200,000 job-years over a 15-year period, with further growth potential as additional investments and partnerships materialise.
South Korea views the CPSP as a cornerstone for elevating Canada–Korea ties into a durable, whole-of-government strategic partnership encompassing defence, industry, technology and security cooperation. This approach aligns with existing bilateral frameworks, including the Canada–Korea Free Trade Agreement and the Comprehensive Strategic Partnership, as well as Canada’s Indo-Pacific Strategy.
Hanwha-Cohere MoU.
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A key component of the announcement is a binding MOU between Hanwha Ocean and Algoma Steel to establish a long-term strategic arrangement supporting Canada’s steel sector. Under the agreement, Hanwha Ocean is expected to provide up to USD 250 million (approximately CAD 345 million) in aggregate potential value, including support for the development of a new structural steel beam mill in Canada and anticipated purchases of domestically produced steel for submarine construction and sustainment.
The partnership aims to anchor submarine construction, maintenance, repair and overhaul activities in Canada, with infrastructure planned in Nova Scotia and British Columbia. The proposed beam mill would also enable Algoma to supply steel for infrastructure, housing and road projects, reducing reliance on imports and creating new employment opportunities.
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“This partnership is about building something lasting in Canada,” said Hee Cheul Kim, President and CEO of Hanwha Ocean. “By anchoring steel production, infrastructure and long-term sustainment domestically, we are strengthening Canada’s industrial resilience and naval readiness.”
Beyond shipbuilding, Hanwha Systems entered into separate MOUs with Telesat and MDA Space to collaborate on secure Low Earth Orbit (LEO) satellite communications and defence space technologies. These partnerships will explore sovereign satellite connectivity solutions applicable to maritime and submarine operations, leveraging Telesat’s Lightspeed LEO network and MDA Space’s AURORA software-defined satellite platform.
Hanwha Systems PV Labs MoU.
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In the digital and advanced technology domain, Hanwha Ocean and Hanwha Systems partnered with Canadian AI firm Cohere to explore artificial intelligence applications for submarine operations and smart shipyards. The collaboration will assess AI-enabled solutions, including large language and multimodal models, to improve operational efficiency, decision-making and industrial productivity.
Hanwha Systems also signed an MOU with PV Labs to jointly develop advanced electro-optical and infrared (EO/IR) sensor capabilities. The partnership includes technology transfer, local system integration and production in Canada, with the jointly developed products targeted at global export markets.
Collectively, the agreements reinforce Hanwha’s strategy to establish a deep and enduring presence in Canada’s defence and industrial ecosystem. The company already has teaming agreements and MOUs with more than a dozen Canadian firms across training, communications, propulsion, construction and in-service support, positioning itself as a long-term partner in strengthening Canada’s sovereign defence capabilities and industrial base.
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