As Canada advances the Canadian Patrol Submarine Project (CPSP), the evaluation of the program is increasingly extending beyond traditional naval performance metrics such as range, endurance, and combat systems. Attention is now turning to whether major defence procurement initiatives can also deliver sovereign industrial capacity and support Canada’s broader nation-building objectives.
Hanwha’s approach to CPSP reflects this shift. Rather than treating the project as a one-off submarine acquisition, the company has positioned CPSP as a strategic entry point for long-term industrial participation in Canada, linking defence sustainment with a wider framework of investment, trade, and multi-sector industrial cooperation.
According to an analysis by KPMG, Hanwha-linked industrial cooperation associated with CPSP is expected to support average annual employment of around 15,000 jobs over the program period. From 2026 to 2040, this translates into approximately 200,000 job-years, including direct, indirect, and induced employment across the Canadian economy.
The estimate is based on an initial assessment of roughly 20 Hanwha-related industrial programs currently under development or active consideration. These initiatives span defence sustainment and maintenance, repair and overhaul (MRO) activities, submarine logistics and infrastructure, shipyard cooperation, domestic steel and materials, equipment localisation, advanced manufacturing, aerospace and aviation systems, digital and AI-enabled solutions, satellite communications, joint research and development, and venture and SME investment nationwide.
KPMG noted that the employment impact is driven by a broad, multi-sector industrial base rather than a single defence platform. This diversity is seen as a key differentiator, enabling sustained employment over decades and embedding CPSP within a long-term Canadian industrial ecosystem.
Stéphanie Tremblay, Senior Manager for Strategy and Economics at KPMG, said the firm used Hanwha’s projected investments, anticipated future sales, and procurement plans to estimate employment effects using Statistics Canada’s input–output model. Employment results are expressed in person-years, representing one full-time worker employed for one year over the 2026–2040 period.
She explained that person-years reflect employment supported over time rather than headcount in any single year, adding that the figures are high-level estimates based on preliminary information and are expected to evolve as projects progress. In most cases, future sales arising from investment projects and anticipated purchases are expected to sustain recurring annual activity, accounting for roughly two-thirds of the total job-year impact. Employment is projected to ramp up in the early years before stabilising during long-term operations.
The analysis shows that employment effects are widely distributed across the Canadian economy. Large, long-running industrial and infrastructure projects support stable workforces, while manufacturing and industrial activities such as equipment assembly, facility upgrades, maintenance operations, and logistics services create ongoing demand for skilled technicians, engineers, and production workers throughout the value chain.
A growing share of jobs is also linked to advanced technology and innovation. Demand for digital engineering, AI-enabled systems, satellite communications, and applied research is expected to generate high-skill roles that complement traditional manufacturing and help keep Canada’s industrial base competitive.
This employment profile is underpinned by long-term operational activity rather than short-term construction. CPSP is structured as a multi-decade program, spanning initial construction through decades of in-service support, maintenance, and upgrades. As a result, many of the jobs identified in the KPMG analysis extend into the 2030s and 2040s, aligning with Canada’s long-term defence modernisation, clean energy, and critical infrastructure plans.
“Our commitment in Canada is centred on long-term employment and industrial growth,” said Hee-Cheol Kim, President and CEO of Hanwha Ocean. “By investing across multiple sectors and working with Canadian partners nationwide, we aim to build industrial capability that remains in Canada for decades, supporting both economic resilience and long-term security.”
Over the past two years, Hanwha Ocean has engaged with more than 100 Canadian companies as part of a nationwide effort to build a durable industrial ecosystem around CPSP. Formal cooperation has already been established with more than a dozen partners, including Babcock Canada, BlackBerry, CAE, Curtiss-Wright Indal Technologies, Des Nedhe Group, Gastops, Hepburn Engineering, J Squared Technologies, L3Harris Canada, ModestTree, and PCL Construction. The CPSP value chain is expected to expand further through cooperation with local shipyards, the domestic steel industry, satellite communications providers, and a broader range of Canadian industrial partners.
Beyond CPSP-specific cooperation, Hanwha is also expanding its wider footprint in Canada through group affiliates. Most recently, its energy affiliate Q ENERGY France, in partnership with Hanwha Ocean, entered the pre-qualification process for an offshore wind project in Nova Scotia. Hanwha Ocean has also signed a memorandum of understanding with Fermeuse Energy to explore cooperation on the Newfoundland and Labrador LNG project.
Industry observers note that Hanwha’s ability to translate defence programs into long-term industrial participation distinguishes it as a partner for Canada. Drawing on a global portfolio spanning steel, energy, space, advanced manufacturing, and digital technologies, Hanwha’s model embeds defence-related activity within a broader investment framework. Applied in Canada, this approach demonstrates how CPSP could deliver not only advanced naval platforms, but also sustained employment, industrial resilience, and national capability over the coming decades.
