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Canada’s Automotive Parts Manufacturers’ Association and South Korea’s Hanwha Corporation have announced a joint venture to establish a new Canadian entity for producing non-commercial industrial vehicles and heavy military vehicles for domestic and global markets.
The new range of vehicles will reportedly be fully produced in Canada by Canadian workers with “Made in Canada” parts and materials, including steel and aluminium.
The venture, which is fully contingent on Hanwha’s KSS-III being selected for the Canadian Patrol Submarine Project (CPSP), is envisioned to protect and create tens of thousands of automotive sector jobs for Canadians while establishing a domestic production capability to supply non-commercial industrial vehicles, including military vehicles, in Canada and globally.
This joint venture between Automotive Parts Manufacturers’ Association (APMA) and Hanwha would feature Canadian majority ownership and board membership, and the CEO will be Canadian.
“This joint venture will deliver on the prime minister’s challenge to Canada’s automotive sector to help drive the country’s unprecedented commitment to national defence,” APMA president Flavio Volpe said.
“This partnership, should Hanwha’s KSS-III submarine be selected for the Canadian Patrol Submarine Project, will be tremendous for Canada’s automotive sector.
“The APMA is proud to extend our full support to South Korea’s bid and broader industrial opportunities it presents for Canada.”
This initiative supports and advances the “Build in Canada” pillar of Canada’s recently released Defence Industrial Strategy and will provide the country with an ability to produce its own defence equipment, enabling the conditions that directly benefit domestic industry and ensure Canadian sovereign control: create quality jobs and economic benefits for all Canadians and increase the share of defence acquisitions awarded to Canadian firms.
APMA and Hanwha will work together to establish a sovereign Canadian automotive business unit that would be focused exclusively on the design and production of non-commercial, industrial vehicles including heavy axle and special purpose vehicles for use by the Canadian Armed Forces, federal, provincial and municipal government departments and agencies, emergency services, and Arctic and Crown resource-sector operations, providing a world-class fleet of vehicles with the ability to export to allied nations.
As part of the joint venture, should the KSS-III submarine be selected for CPSP, the APMA and Hanwha will establish production capabilities in Canada for the following military vehicles: K9 Thunder self-propelled howitzer, K10 ammunition resupply vehicle, Redback infantry fighting vehicle, Chunmoo Multiple Launch Rocket System and uncrewed ground vehicles.
“Canada brings world-class advanced manufacturing and highly skilled talent pools and APMA has long stood at the centre of Canada’s manufacturing leadership and innovation,” Hanwha Aerospace chief executive officer Son Jae-il said.
“We believe that when Canada’s industrial capability is combined with Hanwha’s technology and manufacturing experience, we could accomplish a new model of cooperation that goes beyond mere procurements.”
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