SEOUL, August 27 (AJP) - A consortium led by South Korea’s two largest shipbuilders, Hanwha Ocean and HD Hyundai Heavy Industries, has been shortlisted to compete in Canada’s next-generation submarine acquisition program.
This is a $14 billion defense project that could eventually swell to $43 billion over three decades when long-term maintenance and upgrades are included.
Industry officials confirmed Wednesday that the two companies, bidding as a consortium, were selected for the final round alongside Germany’s ThyssenKrupp Marine Systems.
The contract, part of the Canadian Patrol Submarine Project, seeks to replace the Royal Canadian Navy’s four Victoria-class submarines, purchased secondhand from Britain in the late 1990s and slated for retirement in the mid-2030s.
The Canadian government has said it intends to acquire as many as 12 diesel-electric submarines, each weighing about 3,000 tons, that can operate in the Arctic and deliver extended range, endurance and stealth.
Hanwha Ocean is leading the Korean bid, offering its Jangbogo-III Batch-II design, a 3,000-ton submarine equipped with air-independent propulsion and lithium-ion batteries, which allow for underwater missions of more than three weeks without surfacing.
Hyundai Heavy is participating as a supporting partner under an agreement with Hanwha, created earlier this year by the country’s defense procurement agency to promote joint bids for international naval contracts.
The Canadian Navy is expected to finalize its decision by 2028, though an earlier contract signing could come as soon as next year if negotiations progress quickly.
A South Korean defense official said the government would continue "full-spectrum negotiations," including high-level meetings with Canadian stakeholders and public diplomacy efforts to strengthen support for the Korean bid.
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