AtkinsRéalis partners Hanwha Ocean on supporting Canada’s submarine capability

AtkinsRéalis, a Montreal-based design and engineering consultancy, has signed a memorandum of understanding (MoU) with Hanwha Ocean, a South Korean shipbuilding firm, to support Canada’s submarine capabilities.

The agreement arrives amid Canada’s new defence industrial strategy (DIS), which was launched in February 2026 by the federal government. The DIS is a long-term plan that aims to revitalize the country’s defence sector by building domestic industrial capacity and ensuring 5% of GDP defence spending by 2035.

With a Trump-led United States making continual threats on Canada’s sovereignty as well as economically punishing its longtime trade partner with tariffs, the United States is now a significantly less-favoured partner for military contracts. As with trade agreements, the Carney government is seeking to diversify its military spending away from American firms towards less antagonistic “allies.” That means a preference for Rheinmetall over Raytheon and Daewoo over Lockheed Martin as Canada aims to rebuild its long-maligned and underfunded military and defence sector.

The AtkinsRéalis and Hanwha Ocean partnership is the first step in a long-term collaboration that will look to support Canada’s submarine capability, including sustainment and development of domestic industrial capacity. It combines AtkinsRéalis’ experience in submarine infrastructure and supporting the UK’s submarine enterprise with Hanwha Ocean’s submarine design and manufacturing capability.

“This memorandum of understanding is a practical step to explore how AtkinsRéalis’ global experience in defence, combined with our Canadian capabilities, can support Hanwha Ocean in strengthening Canada’s sovereign submarine readiness and resilience, which will in turn support a high-tech manufacturing base and generate long-term economic benefits at home,” said Stéphanie Vaillancourt, president, Canada, AtkinsRéalis.

The MoU will have three areas of collaboration: submarine infrastructure design and delivery, working alongside government and industry; supporting establishment of manufacturing capability in Canada; and generating new opportunities for Korean and Canadian industry in the markets of nuclear, power, and defence.

Formerly Daewoo Shipbuilding & Marine Engineering, Hanwha Ocean is one of the three major South Korean shipbuilders, alongside Hyundai and Samsung. The public company builds container ships, surface naval vessels, auxiliary ships, and submarines.

“AtkinsRéalis brings strong experience in complex systems and lifecycle support, together with a strong understanding of the Canadian environment. Through this MoU, we have established a practical basis to explore how our teams can work together in submarine capability, industrial capability development in Canada, and long-term support, with the aim of creating lasting value for Canadian industry,” said Steve SK Jeong, senior executive vice president, Hanwha Ocean.

AtkinsRéalis’ submarine engagements include working with Rolls-Royce Submarines for over 27 years and supporting Babcock International in its work at Davenport Royal Dockyard in England – where the Royal Navy’s nuclear-powered submarines are maintained.

The firm is also the steward of Candu nuclear technology; in South Korea, three Candu reactors are in operation out of a total of four built since 1977.