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| ▲ Officials pose for a photo during a signing ceremony for multiple partnerships among Hanwha Group affiliates and Canadian firms in Toronto, Canada, on Jan. 26, 2026, in this photo provided by Hanwha Group. (PHOTO NOT FOR SALE) (Yonhap) |
Hanwha-Canada-deals
Hanwha units sign partnerships with 5 Canadian companies for submarine bid
SEOUL, Jan. 27 (Yonhap) -- Hanwha Ocean Co., a shipbuilding unit of Hanwha Group, and its defense solutions affiliate Hanwha Systems Co. have signed partnership deals with Canadian steel, artificial intelligence (AI) and aerospace companies, the group said Tuesday, a move partly aimed at supporting their bid for a multibillion dollar Canadian submarine project.
The partnerships were signed during a Korea-Canada industrial cooperation forum in Toronto as part of efforts to meet the Canadian government's offset requirements for selecting the winner of its submarine program, according to the company.
An offset requirement refers to a policy under which a seller is expected to offer industrial benefits, such as technology transfers, to the buyer's country as part of a broader defense contract.
The South Korean government has sent a special delegation led by presidential chief of staff Kang Hoon-sik and Industry Minister Kim Jung-kwan to support a Korean consortium's bid for the Canadian submarine project, estimated to be worth 60 trillion won (US$41.4 billion).
The consortium of Hanwha Ocean and HD Hyundai Heavy Industries Co. has been shortlisted as a final contender, alongside Germany-based ThyssenKrupp Marine Systems.
According to Hanwha Group, Hanwha Ocean signed a memorandum of understanding (MOU) with Algoma Steel Inc., a major steelmaker based in Canada, to invest some $251 million.
Under the deal, the two companies will cooperate in building a new steel beam mill in Canada and establishing infrastructure to supply steel products for submarine repair and maintenance facilities.
"By establishing stable, long-term steel production and infrastructure in Canada, we will contribute to securing reliable submarine capabilities not only for today but for future generations," Kim Hee-cheul, chief executive officer (CEO) of Hanwha Ocean, said.
Under a separate MOU among Hanwha Ocean, Hanwha Systems and Canada's AI company Cohere Inc., the companies will collaborate in developing AI technologies for shipbuilding and submarine operation systems based on Cohere's AI models.
In addition, Hanwha Systems inked an MOU with Telesat, a Canadian satellite communications firm, for collaboration in low Earth orbit satellite projects.
The Korean company also signed partnership deals with Canada's MDA Space and PV Labs to join hands in space technology and imaging solutions that can be widely used for defense purposes.
"Hanwha Systems will make efforts to help Korea establish itself as a core partner in Canada's global economic and security supply chain, leveraging our submarine operation technologies across marine, satellite, AI and security sectors," Son Jae-il, CEO of Hanwha Systems, said.
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