Hanwha says Canada partnerships could generate 200,000 jobs as it vies for submarine deal

Hanwha Ocean President and CEO Kim Hee-cheol (fifth from left) and Ontario Minister of Economic Development Victor Fedeli (fourth from left) pose for a photo in front of the research vessel Jang Yeong-sil at Hanwha Ocean’s Geoje shipyard on Thursday. (Hanwha Ocean)

Hanwha Group projects it will create more than 200,000 jobs in Canada for the next 15 years through its industrial cooperation projects as it ramps up efforts to win a major Canadian submarine bid.

The South Korean conglomerate said Friday it plans to pursue industrial cooperation measures across sectors spanning shipbuilding, steel, artificial intelligence and aerospace in Canada. Hanwha said its proposed package could generate more than 200,000 cumulative jobs between 2026 and 2040, if the group is selected for the Canadian Patrol Submarine Project, citing an analysis by global consulting firm KPMG.

The CPSP is one of Canada’s largest defense acquisitions in recent decades, involving the planned purchase of up to 12 new diesel-powered submarines to replace the country's aging fleet. Hanwha Ocean is up against Germany's Thyssenkrupp Marine Systems for the bid, which is valued at around 60 billion Canadian dollars ($43.5 billion).

Hanwha is positioning its broader business portfolio as part of its appeal to stay competitive in the race, extending beyond naval platforms. Q Energy, the group’s European energy unit, is already involved in offshore wind projects in Nova Scotia, while Hanwha Ocean is co-developing a liquified natural gas project in Newfoundland and Labrador with Fermeuse Energy.

Under Canada's evaluation framework for the submarine bid, economic benefits, including job creation, integration into the domestic defense supply chain, and industrial benefits, account for 15 percent of the bid score, according to Hanwha.

“Our commitment in Canada is centered on long-term employment and industrial growth,” said Kim Hee-cheol, president and CEO of Hanwha Ocean.

“By investing across multiple sectors and working with Canadian partners nationwide, we are helping to build industrial capability that stays in Canada for decades,supporting both economic resilience and long-term security.”

As part of its outreach, Hanwha Ocean said Friday that Victor Fedeli, Ontario's minister of economic development, job creation and trade, visited its shipyard in Geoje, South Gyeongsang Province, on Thursday.

During the tour, Hanwha Ocean showcased its design and production processes for the KSS-III submarine model proposed for the CPSP. The company presented a detailed plan to transfer key technologies and localize maintenance capabilities, emphasizing benefits for Ontario's manufacturing sector.

"Discussions on cooperation with Ontario’s industries demonstrate our firm commitment to establishing sustainable submarine construction and maintenance capabilities in Canada," CEO Kim added during the minister's visit.

Hanwha Ocean has recently signed memorandums of understanding with over 10 Canadian companies and is actively seeking further local partnerships to align with Ottawa’s "Buy Canadian" policy.