Hanwha signs 5 MOUs with Canadian firms to boost submarine project odds

Hanwha Systems CEO Son Jae-il, second from left, Hanwha Ocean CEO Kim Hee-cheul, fourth from left, and Cohere co-founder Ivan Zhang, third from left, pose after the three firms signed a memorandum of understanding for a strategic partnership on marine artificial intelligence, in Toronto, Monday (local time). From left are Deputy Minister of Innovation, Science and Economic Development Canada Philip Jennings, Son, Zhang, Kim, Korean Minister of Trade, Industry and Resources Kim Jung-kwan and Ontario Minister of Economic Development, Job Creation and Trade Victor Fedeli. Courtesy of Hanwha Group

Hanwha Group has sealed multiple deals with Canadian steel, artificial intelligence (AI), satellite communication and aerospace firms to strengthen bilateral partnerships, as Canada approaches a decision between Korea and Germany for its submarine construction project.

The deals signed in Toronto on Monday (local time) were part of a Korea-Canada industrial cooperation forum. A representative of the presidential office and the ministers of industry and defense participated in the event, emphasizing the Korean government’s strong commitment to winning the bidding process.

Hanwha Group’s shipbuilding arm, Hanwha Ocean, and defense systems affiliate, Hanwha Systems, jointly signed five memorandums of understanding (MOUs) with Canadian companies. The agreements outline proposals to provide industrial and technological benefits to Canadian firms, aligning with Ottawa’s “Buy Canadian” initiative amid rising global trade protectionism.

Hanwha Ocean signed an MOU with Canadian steelmaker Algoma Steel. Under the agreement, the two companies will cooperate on the construction of a new steel mill in Canada and the supply of steel for next-generation Canadian submarines.

The project will also support the development of new maintenance, repair and overhaul infrastructure aimed at sustaining the Canadian maritime fleet. Hanwha Ocean plans to invest up to $250 million in the partnership.

Hanwha Ocean CEO Kim Hee-cheul said at the forum that the partnership will enable “stable and long-term steel-producing infrastructures that will contribute to preparing a submarine force for not just the present but also future generations of Canada.”

Hanwha Ocean and Hanwha Systems reached a tripartite agreement with Canadian AI firm Cohere. Valued at more than $7 billion and backed by investors including Nvidia and Oracle, Cohere agreed to work with the Korean firms to develop a new AI model for submarine production planning, design and manufacturing.

The new system will be built on Cohere’s large language model and large multimodal model technologies.

Hanwha Ocean CEO Kim Hee-cheul, front row left, and Algoma Steel CEO Rajat Marwah, front row right, pose after signing a memorandom of understanding for a strategic partnership on Canadian steel in Toronto, Monday (local time). Courtesy of Hanwha Group

With Canadian satellite communication firm Telesat, Hanwha System agreed to jointly develop a competitive low earth orbit (LEO) satellite network for not just Canada but the global market. Telesat, aiming to launch 198 LEO satellites by the end of the year, will also cooperate with the Korean firm to introduce a new military LEO satellite communication system for Korea.

Hanwha Systems also signed a MOU with tech company MDA Space to generate synergy based on the latter’s software-defined satellite platform Aurora. Another MOU with imaging solutions company PV Labs targets advancing electro-optical and infrared sensor technologies for future defense programs.

Presidential chief of staff Kang Hoon-sik, who attended the forum, said bilateral ties should now move beyond trade and investment expansion toward more future-oriented areas such as AI transformation and clean energy development.

He pointed to the automobile industry as a linchpin of the partnership, adding that deeper cooperation in the sector would help both countries strengthen their growth engines in North America.

Minister of Trade, Industry and Energy Kim Jung-kwan, who also attended the forum, said Korea is “ready to accelerate cooperation with Canada in hydrogen-based production, infrastructure and mobility businesses, leveraging Canada’s abundant natural resources.”

“We will strengthen parts and supply chains for internal combustion, electric vehicles and hydrogen vehicles in partnership with Canada,” Kim said.

Victor Fedeli, minister of economic development, job creation and trade for Ontario, recounted during the forum his recent visit to Hanwha Ocean’s production hub in Geoje, South Gyeongsang Province.

“I recently returned from Korea, where one of the highlights of my political career was touring a Hanwha submarine. Once I stepped inside, they practically had to pull me out by my hair. It was truly impressive,” he said.