Canadian Auto Suppliers and Hanwha Military Hardware Joint Venture

planned

Canadian auto parts suppliers have struck a tentative deal to build military equipment such as self-propelled howitzers and mobile rocket launchers with South Korean defence conglomerate Hanwha Corp. The joint venture will be 51% Canadian owned and contingent on Hanwha winning a multibillion-dollar contract to build 12 submarines for the Royal Canadian Navy. The equipment will be built in Canada with maximum Canadian content, and the venture aims to leverage intellectual property to produce industrial, mining, and special-purpose vehicles, including those for the Arctic. The Canadian government is the prospective initial customer, with plans to also bid on overseas defence work.