Seoul: Hanhwa Aerospace Co., a defense affiliate of Hanwha Group, announced the signing of a memorandum of understanding with Canada's Automotive Parts Manufacturers' Association (APMA) to establish a new entity dedicated to producing non-commercial industrial and military vehicles.

According to Yonhap News Agency, the joint venture with APMA and Hanwha Ocean Co. hinges on the condition that Hanwha Ocean is selected for a substantial Canadian defense project. Hanwha Ocean, the shipbuilding arm of the South Korean conglomerate, is currently competing for the Canadian Patrol Submarine Project (CPSP). The CPSP, valued at approximately 60 trillion won (US$40.6 billion), aims to procure up to 12 conventional diesel-electric submarines for Canada.

Hanwha is in direct competition with Germany's Thyssenkrupp Marine Systems for this project. The proposed Canadian joint venture would focus on designing and producing non-commercial industrial vehicles, such as heavy axle and special purpose vehicles, intended for use by the Canadian Armed Forces and other entities.