Alphabiz - Canada Says Submarine Bids from Hanwha Ocean, TKMS ‘Significantly Strengthened’

Prime Minister Kim Min-seok and Canadian Prime Minister Mark Carney Inspect ROKS Jang Yeong-sil at Hanwha Ocean Shipyard (Photo = Yonhap News Agency)

[Alpha Biz= Kim Jisun] The Canadian government has positively assessed the final proposals submitted by Hanwha Ocean and Thyssenkrupp Marine Systems (TKMS) for its next-generation submarine program, noting substantial improvements.

According to Radio-Canada on May 11, a federal government source said the final bids submitted on April 29 showed a significant increase in Canadian content, along with enhanced industrial and technological benefits. These improvements are expected to generate greater economic impact and job creation within Canada.

Hanwha Ocean and TKMS are competing for the Canadian Patrol Submarine Project (CPSP), a major defense initiative to replace Canada’s four aging Victoria-class submarines with up to 12 diesel-powered submarines. The project is estimated to be worth up to KRW 60 trillion.

The Canadian government had previously extended the bidding deadline by eight weeks after determining that earlier proposals lacked sufficient economic benefits. During that period, both companies expanded partnerships with Canadian firms—Hanwha signing around 10 new agreements and TKMS adding four—across sectors including steel, engineering, defense, and artificial intelligence.

Canada plans to select a preferred bidder within this year, with the first submarine targeted for deployment by 2032.

Hanwha Ocean has emphasized that its proposal goes beyond supplying submarines, aiming to build a comprehensive strategic partnership that enhances Canada’s industrial competitiveness and defense capabilities. The company stated it is focusing on job creation, local investment, and localization strategies aligned with Canadian government priorities.

According to Hanwha Ocean, the CPSP timeline currently targets the selection of a preferred bidder by the first half of 2026 and the signing of a formal contract in 2028.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)