Having failed to win the bid for the Canadian Patrol Submarine Project (CPSP), South Korean shipbuilder Hanwha Ocean will withdraw from industrial cooperation initiatives linked to the Canadian shipbuilding sector—initiatives that were contingent upon the company securing the contract for Canada’s new submarine program (hereinafter referred to as the “CPSP submarine project”).
According to Canadian media reports, following the official confirmation that the German naval shipbuilder TKMS has been selected as the preferred supplier for the CPSP submarine project, Hanwha Ocean has announced its withdrawal from the collaborative project to establish a training center for shipbuilding specialists—an initiative it had previously been advancing alongside Ontario Shipyards and Mohawk College.
Previously, in order to increase the bidding chips for the CPSP submarine project, Hanwha Ocean signed a strategic cooperation memorandum of understanding with the Ontario Shipyard in February 2026, aiming to promote the restart of large-scale shipbuilding business in Ontario; at the same time, it signed a strategic cooperation letter of intent with the Ontario Shipyard and Mohawk College, and planned to establish an embedded shipbuilding training center at the Ontario Shipyard’s plant in Hamilton to meet the long-term talent needs of shipbuilding.
Under the agreement, the three parties originally planned to establish a shipbuilding talent training center at Mohawk College to jointly cultivate core technical personnel in fields such as welding and marine robotics, as well as an embedded shipbuilding training center at the Ontario shipyard.
Hanwha Ocean has announced plans to establish a comprehensive training complex at the Ontario shipyard by exporting smart shipyard technologies and shipbuilding expertise, with the aim of cultivating core shipbuilding talent in fields such as welding, manufacturing, marine machinery, electrical systems, robotics, and non-destructive testing over the next 10 to 15 years.
As part of a strategy to cultivate local shipbuilding talent and secure a production base, Hanwha Ocean had pursued strategic investments—such as establishing a specialized shipbuilding training center in Ontario—and sought to expand industrial cooperation with local companies; however, since these initiatives were contingent upon winning the CPSP submarine contract—a bid Hanwha Ocean ultimately failed to secure—all related plans have now been shelved.
However, Canadian media reported that even if Hanwha Ocean withdraws from the collaboration, the partnership between Mohawk College and Ontario Shipyards will remain intact. Ontario Shipyards stated that it would “continue its partnership with Mohawk College and proceed with the planned construction of the training vessel.” A Mohawk College spokesperson also confirmed: “The contract with Ontario Shipyards remains valid.”
The CPSP submarine program involves the procurement of twelve 3,000-ton class conventional submarines. Since the project was announced, it has attracted bids from various global defense shipbuilders, with Hanwha Ocean and TKMS ultimately emerging as the shortlisted candidates.
According to South Korean media, the value of the submarine contract alone is approximately 20 trillion won (about US$13.408 billion); when including maintenance, repair, and overhaul (MRO) services for the next 30 years, the total project value reaches 60 trillion won (about US$40.224 billion), sparking fierce competition between TKMS and Hanwha Group.
In March of this year, Canada had indicated an intention to split the order—considering the acquisition of six German Type 212CD submarines and six South Korean KSS-III Batch-II submarines—but it is now expected that TKMS will secure the entire order for all twelve vessels.
Currently, Canada is engaged in exclusive negotiations with TKMS to finalize contract details, with plans to sign the formal construction contract by the end of 2027. Meanwhile, Hanwha Ocean retains its status as the runner-up; should negotiations with TKMS fail, Canada might invite Hanwha Ocean to the negotiating table, though the market considers this unlikely.