South Korean company Hanwha has linked its bid to supply submarines to the Royal Canadian Navy with a pledge to build military vehicles in Canada [1].
This strategy ties a multibillion-dollar defense contract [1] to the survival of the domestic automotive sector, potentially securing jobs in manufacturing across the country.
Flavio Volpe, president of the Automotive Parts Manufacturers Association (APMA), said the submarine bid has the full support of the automotive industry [2]. According to Volpe, Hanwha has committed to partnering with the domestic automotive sector to produce military armored vehicles if the company is awarded the contract [2].
The potential deal would see Hanwha supply up to 12 new submarines to the Royal Canadian Navy [3]. By integrating vehicle production into the proposal, Hanwha aims to ensure that the economic benefits of the defense procurement extend beyond the naval sector and into land-based manufacturing [1].
Volpe said the move could help keep Canada's automotive industry afloat [1]. The automotive sector has faced ongoing pressure, and the promise of domestic military vehicle production offers a new avenue for industrial growth and stability [3].
The proposal arrives as Ottawa seeks to modernize its naval fleet. The multibillion-dollar nature of the project makes the industrial benefits, known as industrial and technological benefits, or ITBs, a critical component of the selection process [1].
Hanwha is positioning itself as a partner capable of delivering both high-tech maritime assets and a sustainable boost to Canada's industrial base [3]. The company's approach seeks to align national security needs with economic priorities in the automotive corridor [2].
“Hanwha has committed to partnering with the domestic automotive sector to produce military armored vehicles.”
Hanwha is utilizing a 'whole-of-economy' bidding strategy to increase its competitiveness for the Royal Canadian Navy contract. By promising to revitalize the domestic automotive sector through armored vehicle production, the company is addressing Canada's requirement for industrial offsets, effectively turning a defense purchase into a broader industrial policy tool.
