The Automotive Parts Manufacturers’ Association (APMA) and Hanwha Corporation announce landmark Canada-South Korea joint venture
April 29, 2026
by CM Staff
This joint venture between APMA and Hanwha would reportedly feature Canadian majority ownership and board membership, and the CEO would be Canadian.
Talking Points
Canada’s Automotive Parts Manufacturers' Association (APMA) and Hanwha Corporation have formed a joint venture to create a new Canadian entity focused on producing non-commercial industrial vehicles and heavy military vehicles. This initiative aims to generate jobs for Canadians and establish local production capabilities, contingent on the selection of Hanwha’s KSS-III submarine for the Canadian Patrol Submarine Project.
The venture will prioritize Canadian ownership and leadership, with plans to manufacture vehicles using domestic materials. It aligns with Canada’s Defence Industrial Strategy, promoting the “Build in Canada” initiative. The partnership will enable the production of various military vehicles, including the K9 Thunder Self-propelled Howitzer and Redback Infantry Fighting Vehicle.
- Joint venture aims to produce vehicles for Canadian Armed Forces and other government agencies.
- Focus on using Canadian workers and materials for manufacturing.
- Supports national defence commitments and local industry growth.
This collaboration highlights Canada's commitment to enhancing its defence capabilities while fostering domestic manufacturing and job creation in the automotive sector.
TORONTO — Canada’s Automotive Parts Manufacturers’ Association (APMA) and Hanwha Corporation have announced a landmark joint venture to establish a new Canadian entity with full capabilities to produce non-commercial industrial vehicles for Canada as well as 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 aluminum. According to a press release from APMA and Hanwha Corporation, the venture, which is contingent on Hanwha’s KSS-III being selected for the Canadian Patrol Submarine Project (CPSP), will create automotive sector jobs for Canadians while also establishing a domestic production capability to supply non-commercial industrial vehicles in Canada and globally.
This joint venture between APMA and Hanwha would reportedly feature Canadian majority ownership and board membership, and the CEO would also be Canadian, according to the companies in a press release. This initiative would also thus support and advance the “Build in Canada” pillar of Canada’s recently released Defence Industrial Strategy (DIS) and could also provide the country with an ability to produce its own defence equipment enabling conditions that directly benefit domestic industry and ensure Canadian sovereign control.
APMA and Hanwha stated that they 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.
As part of the joint venture, should the KSS-III submarine be selected for CPSP, the APMA and Hanwha state that they will establish production capabilities in Canada for the following military vehicles:
- K9 Thunder Self-propelled Howitzer and K10 Ammunition Resupply Vehicle
- Redback Infantry Fighting Vehicle
- Chunmoo Multiple Launch Rocket System
- Uncrewed Ground Vehicles
“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. 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,” said Flavio Volpe, President, Automotive Parts Manufacturers’ Association.
“Canada brings world-class advanced manufacturing and highly skilled talent pools and APMA has long stood at the center of Canada’s manufacturing leadership and innovation. 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,” said Son Jae-il, CEO, Hanwha Aerospace.
