South Korea’s Hanwha sweetens the pot at deadline for submarine bids

RCI

Company signs MOU with Canada’s automotive manufacturers promising to build armoured vehicles.

South Korea’s Hanwha Group of companies is sweetening the pot in its bid to land Canada’s multi-billion-dollar submarine program, delivering an updated pitch that would help expand this country’s defence industrial base.

The group has signed a memorandum of understanding with Canada’s Automotive Parts Manufacturers’​ Association (APMA), promising to build a suite of armoured vehicles in Canada if it wins the submarine bid.

A year ago, CBC News first reported that Hanwha Ocean and Hanwha Aerospace delivered an unsolicited bid to the federal government proposing to sell not only submarines, but also K-9 mobile artillery guns and possibly armoured vehicles.

• ExclusiveSouth Korea pitches Canada on $20B-plus plan for subs, armoured vehicles (new window)

As part of that proposal, company officials said they could establish an armoured vehicle maintenance and manufacturing facility if Canada accepted the offers.

In interviews with CBC News, Hanwha executives and South Korean defence officials have emphasized that they are interested in helping Canada rebuild its defence industrial capacity.

The proposed partnership with APMA, announced Wednesday, comes after the federal government gave both Hanwha Ocean and the German bidder TKMS extra time to refine the economic benefits portion of their bids.

The deadline for updated proposals from both companies is Wednesday.

South Korea wants to be Canada’s new military supplier

As Ottawa rethinks U.S. weapons contracts, South Korean arms manufacturers want to resupply Canada’s depleted military with everything from howitzers to submarines. CBC’s Murray Brewster got exclusive access to one company angling to become Canada’s new high tech arsenal.

Industry Minister Melanie Joly has publicly been in favour of the possibility of retooling Canadian auto plants idled by the trade war with the U.S. to build military-grade vehicles.

Hanwha officials say the new partnership could involve not only the K-9 howitzers, but also the company’s Redback infantry fighting vehicles, Chunmoo multiple launch rocket systems, and remotely operated ground drones manufactured in Canada.

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Such a plant would put Hanwha in competition with General Dynamics Land Systems Canada, which for decades has had a long-term strategic relationship with the federal government.

The company promises the new range of vehicles will be fully produced in Canada by Canadian workers with Canadian-made parts and materials, including steel and aluminum.

According to Hanwha, it could also create tens of thousands of automotive sector jobs for Canadians.

Hanwha says it and APMA 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 light-duty trucks and SUVs for use by the Canadian Armed Forces.

Murray Brewster (new window) · CBC News