Hanwha Defence Canada has proposed building armored military vehicles in Canada if it wins the nation's multi-billion-dollar [1] submarine replacement contract.

The proposal represents a strategic attempt to tie a massive naval procurement project to broader industrial growth. By offering to establish domestic production for land-based military hardware, Hanwha aims to embed its operations within the Canadian economy and strengthen bilateral defense ties between Canada and South Korea.

Glenn Copeland, CEO of Hanwha Defence Canada, said there is a need for a much tighter defense relationship between the two nations during the pitch. The company's strategy focuses on expanding its industrial base within Canada to make its bid more attractive to government officials in Ottawa [2].

As part of this effort to sweeten the bid, Hanwha has already engaged in preliminary agreements to support the local industry. The company previously signed a memorandum of understanding to build military vehicles using Canadian steel [3]. This move aligns with the broader goal of ensuring that high-value defense contracts provide tangible economic benefits to the host country.

The submarine replacement program is a critical priority for the Canadian military as it seeks to modernize its aging fleet. Hanwha is positioning itself not just as a supplier of vessels, but as a long-term industrial partner capable of diversifying Canada's defense manufacturing capabilities [4].

Copeland said the goal is to foster a deeper strategic partnership that extends beyond a single procurement cycle. The company believes that integrating South Korean technology with Canadian labor, and materials, will create a more resilient supply chain for the North American defense sector [5].

“Hanwha proposed building armored military vehicles in Canada if it wins the nation's multi-billion-dollar submarine replacement contract.”

Hanwha is utilizing a 'package deal' strategy to overcome the high barriers of entry in the Canadian defense market. By linking the submarine contract to the creation of land-based manufacturing jobs and the use of domestic steel, the company is addressing the Canadian government's requirement for Industrial and Technological Benefits (ITB). This approach shifts the competition from a purely technical evaluation of submarine capabilities to a broader economic debate over industrial sovereignty and bilateral strategic alignment.