![Stephen Fuhr, Canada’s minister of state for defense procurement (second from left), listens to an explanation of a model of the Jang Yeong-sil, the lead boat of the Jangbogo-III Batch-II submarine proposed for the CPSP, during a visit to Hanwha Ocean’s Geoje shipyard on Feb. 2. [Photo=Hanwha Ocean]](https://image.ajunews.com/content/image/2026/03/04/20260304140128416846.jpg)
The Canadian Press reported on March 3 (local time) that Hanwha Ocean CEO Eo Seong-cheol said the company and the South Korean government view a submarine contract as the start of a deeper industrial relationship between the two countries.
Hanwha Ocean and its consortium partner, along with Germany’s Thyssenkrupp Marine Systems, submitted final proposals to the Canadian government on March 2, the deadline. The bids included delivery schedules and investment plans tied to the contract.
Eo told the outlet the deal would be a “major catalyst” for bilateral ties. He said the proposal includes investments across areas such as steel, artificial intelligence and space, and would create an average of 25,000 jobs a year from this year through 2044.
Eo said the final proposal calls for delivering the first submarine in 2032 and four boats by 2035, and includes what the company described as a firm price estimate. Shipbuilding industry officials said that timeline is faster and more specific than the German bid, which they said pledged to deliver at least two submarines to Canada by 2034.
“Hanwha’s proposal is not just a platform proposal,” Eo said. “It is a proposal that combines a clear and accurate delivery plan with a multigenerational industrial partnership, and it fully aligns with Canada’s defense industrial strategy.”
He said Hanwha is also interested in other Canadian contracts and is reviewing cooperation in areas including ground defense programs, electronic and AI technologies, and Arctic-related capabilities.
Eo cited partnerships with multiple Canadian companies to jointly carry out submarine-related work if it wins. “We have already built strong relationships with capable Canadian companies, and we will expand these partnerships regardless of the contract outcome,” he said.
The Canadian Press also carried an interview with TKMS CEO Oliver Burkhard.
Burkhard, referring to comments that Canada’s final selection will weigh how much benefit bidders provide to the Canadian economy and industry, said such demands were driven by the actions of Canada’s “southern neighbor,” and were putting pressure on bidders.
On Canada’s desire for expanded manufacturing investment in Canada by South Korean and German automakers, he said it should not be assumed that “if there is no car production, it does not help Canada,” adding that everything should not be treated as if it belongs in one basket.
* This article has been translated by AI.
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