South Korea-based defense and industrial company Hanwha stated that the agreement is of critical importance for its planned land vehicle production projects in Canada. The company noted that sourcing high-strength military-grade steel from the local supply chain will strengthen the production process.
In April, Hanwha also signed a separate joint venture agreement with the Automotive Parts Manufacturers’ Association of Canada, announcing plans to manufacture land defense vehicles for the Canadian Armed Forces and export them to allied countries.
The agreements are said to be aimed at supporting sectors affected by U.S. tariffs and strengthening the defense manufacturing supply chain in North America.
Another pillar of Hanwha’s defense plans in Canada is its submarine project. The company is competing with rivals for a major contract to supply up to 12 submarines to the Canadian Navy.
The agreement was announced at the facilities of Martinrea International in Vaughan, Ontario, in the presence of a delegation of South Korean government officials.
The Canadian federal government is expected to announce its decision on the subcontracting tender later this month.
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