Hanwha Ocean recently announced that it has decided to establish a subsidiary in Canada with the aim of participating in the bidding for the Canadian patrol submarine project.
In fact, Hanwha Ocean has been cooperating and exchanging technology with local Canadian defense companies since last year.
In 2024, Hanwha Ocean and Hanwha Aerospace jointly participated in CANSEC, Canada’s largest defense exhibition, and showcased their own submarine platforms and technical capabilities during the exhibition. In the same year, Canadian Navy Commander Angus Tapsey personally visited Hanwha Ocean’s Geoje Shipyard to inspect submarine technology levels and discuss issues such as technology transfer and operational strategies.
In 2025, Hanwha Ocean proposed customized solutions for the Canadian Navy’s operational environment and actively promoted order bidding. In May this year, as the only Korean shipbuilding company participating in the CANSEC exhibition, Hanwha Ocean unveiled a model of a Canadian-type patrol submarine based on the KSS-III. During this period, the company signed a business cooperation agreement (MOU) with a Canadian defense company to further consolidate its local partnership.
Regarding the establishment of the new subsidiary, a representative from Hanwha Ocean stated, “The decision to establish the subsidiary is aimed at participating in Canadian defense business and is unrelated to tariffs.”
According to reports, the Royal Canadian Navy currently has four Victoria-class submarines. The first three were delivered between 2000 and 2003, while the fourth was delayed until 2015 due to a fire during transport. The existing Victoria-class submarine fleet is scheduled to be decommissioned in the mid-2030s. To this end, Canada is promoting the Canadian Patrol Submarine Program (CPSP) to replace its existing submarines.
In the third quarter of 2024, the Public Services and Procurement Canada (PSPC) issued a Request for Information (RFI) on behalf of the Canadian Department of National Defence to industry stakeholders, announcing plans to procure up to 12 conventionally powered submarines of 3,000 tons. According to the plan, the contracts for the construction of the 12 submarines will be awarded by 2028, with the first submarine expected to be delivered by 2035, ensuring that there will be no capability gaps during the transition between different classes of submarines.
Canada’s defense minister previously stated, “As a country with the world’s longest coastline in the Arctic, Atlantic, and Pacific Oceans, Canada needs a new submarine fleet. The procurement of 12 conventionally powered submarines with ice-breaking capabilities for the Royal Canadian Navy will enhance Canada’s ability to detect and deter maritime threats and control Canada’s maritime routes.”
According to reports, the submarine project is expected to cost 60 trillion won (approximately US$43.782 billion) and is considered a mega-project. Hanwha Ocean and HD Hyundai Heavy Industries have formed a joint team to bid for the Canadian submarine order.
Previous reports indicated that Japanese and European shipbuilders were also eyeing this large order for 12 submarines, with companies interested in bidding including Kawasaki Heavy Industries of Japan, Saab of Sweden, and ThyssenKrupp Marine Systems of Germany.