Korean Shipbuilding Giant to Anchor Ontario's Naval Revival

HAMILTON, ON – February 19, 2026 – A landmark series of agreements signed today aims to resurrect large-scale shipbuilding in Ontario, positioning the province as a critical hub for Canada’s future naval ambitions. South Korean defence and shipbuilding titan Hanwha Ocean has forged a strategic partnership with Ontario Shipyards and Mohawk College, launching a multi-pronged initiative to transfer advanced technology, build a next-generation workforce, and strengthen Canada's sovereign defence capabilities.

The collaboration was formalized through two key agreements: a Memorandum of Understanding (MOU) between Hanwha Ocean and Ontario Shipyards, and a trilateral Letter of Intent (LOI) that brings Mohawk College into the fold. Together, these pacts create a powerful framework designed to inject world-class expertise into the heart of Canada's industrial heartland, potentially paving the way for the construction of the nation's next submarine fleet.

A Blueprint for a Shipbuilding Renaissance

At the core of the partnership is a plan to rapidly modernize and scale up operations at Ontario Shipyards, the largest ship repair and construction company on the Great Lakes. Under the MOU, Hanwha Ocean will provide extensive technical and operational support, embedding its globally recognized best practices directly into the Hamilton shipyard. This includes transferring knowledge in advanced design and engineering, production planning, quality management systems, and the implementation of 'smart-yard' processes that leverage automation and digital manufacturing.

A tangible first step in this collaboration will be the construction of a new Training and Recruitment vessel, set to begin in 2026 at Ontario Shipyards with design and construction support from Hanwha. This project will serve as an early demonstration of the revitalized shipyard's capabilities and a hands-on platform for the emerging workforce.

"At its core, this partnership is about people," said Shaun Padulo, President and CEO of Ontario Shipyards, during the signing ceremony. "With Hanwha Ocean working alongside our teams and Mohawk College training the next generation in a live shipyard, we are building the Canadian workforce that will deliver and sustain Canadian ships for decades to come. That is how sovereign capacity is created."

The Submarine in the Room: A Bid for Canada's Future Fleet

This strategic partnership is inextricably linked to one of Canada's most significant upcoming military procurements: the Canadian Patrol Submarine Project (CPSP). The project aims to replace the Royal Canadian Navy's aging fleet of four Victoria-class submarines with up to 12 modern, conventionally-powered vessels capable of under-ice operations in the Arctic.

Hanwha Ocean is one of two shortlisted global suppliers, proposing its advanced KSS-III submarine. This vessel features state-of-the-art Lithium-ion batteries and an Air Independent Propulsion (AIP) system, allowing for submerged endurance of over three weeks—a critical capability for Canada's vast maritime territories. The company has publicly stated it could deliver the first four submarines before the Victoria-class is retired in the mid-2030s if awarded the contract this year.

The agreements signed in Hamilton are a clear signal of Hanwha's commitment to building the submarines in Canada, a key requirement of the federal government. Further investment, including a dedicated shipbuilding training centre and expanded contracts with Ontario-based suppliers like Algoma Steel, is contingent on winning the CPSP contract.

"Our objective is not simply to transfer expertise, but to embed Hanwha Ocean's advanced shipbuilding processes and operational know-how directly into Ontario Shipyard operations," stated Kim Hee-cheul, President and CEO of Hanwha Ocean. "This partnership reflects our commitment to building sustainable submarine construction and sustainment capacity in Canada, fully aligned with the objectives of the Canadian Patrol Submarine Project."

Forging a New Generation of Shipbuilders

A cornerstone of the initiative is a direct response to a critical bottleneck in Canadian industry: a persistent shortage of skilled trades. The trilateral LOI establishes an integrated training hub embedded directly within Ontario Shipyards’ Hamilton facility, aiming to create a seamless pipeline from the classroom to the keel.

Mohawk College will lead the development of industry-led credentials and specialized certifications. The curriculum will focus on high-demand disciplines including welding, electrical systems, millwrighting, marine mechanics, robotics, and non-destructive evaluation. This model allows students and apprentices to gain practical experience in a live shipyard environment, ensuring their skills are directly aligned with production requirements.

"Mohawk College believes in the strength and power of industry-led learning," said Paul Armstrong, President of Mohawk College. "By working alongside Hanwha Ocean and Ontario Shipyards, we are creating an environment where expertise, innovation, and education come together to support workforce development."

This effort addresses a well-documented labour gap. While Canadian shipbuilding employment has grown 55% since 2014, the industry continues to struggle to find enough qualified welders, pipefitters, engineers, and naval architects. By creating a dedicated training ecosystem, the partnership aims to solve this problem locally, providing stable, high-paying careers while ensuring projects are not hampered by a lack of personnel.

Revitalizing the Golden Horseshoe and National Defence

The impact of this collaboration is poised to extend far beyond the shipyard gates, aligning with Canada's overarching National Shipbuilding Strategy (NSS). The NSS was launched over a decade ago to end the boom-and-bust cycles of Canadian shipbuilding and create a sustainable domestic industry capable of building and maintaining the nation's naval and coast guard fleets.

This partnership activates Ontario's industrial might in direct support of that strategy. It promises to generate high-quality jobs, expand regional marine and defence supply chains, and bolster the participation of small and medium-sized enterprises throughout the Golden Horseshoe. The initiative has already garnered strong political support, with Ontario Premier Doug Ford publicly advocating for an expanded role for the province's shipyards in national defence projects.

For Hamilton and the broader Great Lakes region, which have a storied history of shipbuilding stretching back to the construction of Corvettes during the World Wars, this represents a new horizon. By integrating industrial modernization with structured workforce development, the partnership between Hanwha Ocean, Ontario Shipyards, and Mohawk College is laying the foundation to re-establish the region as a nationally significant centre for advanced marine manufacturing and a cornerstone of Canada's defence industrial base.