Hanwha Plans Submarine Bid Joint Venture With APMA
Hanwha is expected to announce a submarine-related joint venture on Wednesday with Canada’s Automotive Parts Manufacturers’ Association, tying its bid for Canada’s next submarine fleet to new vehicle production in Canada. The proposal would create a new entity to make military and industrial vehicles with Canadian workers and domestically sourced parts if Hanwha wins the contract.
The revised bids for Canada’s submarine program are due Wednesday. Prime Minister Mark Carney’s government asked bidders to pledge vehicle manufacturing as part of their offers, and Hanwha is responding by promising production in Canada using Canadian steel and aluminum.
Canada’s bid reaches two finalists
Only two companies remain in the competition to build up to 12 submarines for Canada: South Korea’s Hanwha and Germany’s TKMS. The Canadian government recently extended the bidding process to prompt bidders to enrich their offers, and Hanwha’s plan is part of that effort to strengthen its case.
Hanwha’s offer is aimed at supporting Canada’s automotive sector and workers in challenging and uncertain times, the company said in response to the government request. It expects the venture to sustain tens of thousands of automotive sector jobs for Canadians.
Vehicles for Canadian public fleets
The planned unit would focus exclusively on the design and production in Canada of non-commercial industrial vehicles, including heavy-axle and special purpose vehicles. Those vehicles would be for the Canadian Armed Forces, federal, provincial and municipal government departments and agencies, emergency services, and Arctic and Crown resource-sector operations.
Hanwha said the possible vehicle lineup could include the K9 Thunder self-propelled howitzer, the K10 Ammunition Resupply Vehicle, the Redback Infantry Fighting Vehicle, the Chunmoo Multiple Launch Rocket System and uncrewed ground vehicles. The company is using the pledge to broaden the industrial case behind its submarine bid.
Carney’s industrial demand
Mark Carney’s government has been pressing submarine bidders to add vehicle manufacturing to their proposals while Canada looks to spend more defence dollars at home and diversify trade. The approach links the submarine decision to industrial work in Canada, where the auto sector remains heavily reliant on exports to the United States.
The competition now turns on the revised bids due Wednesday, with Hanwha and TKMS still in the running. Hanwha’s new venture with APMA is meant to put a domestic manufacturing commitment beside its submarine offer before the deadline closes.
