Korean firm promises speedy delivery as Canada narrows field for submarine contract
The competition for building Canada’s new fleet of submarines has intensified, with Hanwha Ocean Ltd. from South Korea reaffirming its commitment to deliver more submarines faster than its German competitor, ThyssenKrupp Marine Systems (TKMS). The Liberal government recently narrowed down the field of bidders to these two shipyards, a decision announced by Prime Minister Mark Carney during his meeting with German Chancellor Friedrich Merz in Berlin.
Hanwha Ocean, in partnership with Hyundai Heavy Industries Ltd., has proposed the KSS-III submarines and submitted a detailed proposal to the Canadian government earlier this year. The company stated that they could deliver four submarines to replace Canada’s current fleet before 2035 if awarded the contract in 2026. This timeline would result in significant cost savings on maintenance and support costs by retiring the aging fleet earlier.
On the other hand, TKMS presented a timeline to deliver the first submarine by 2034 and a second one by 2037. Hanwha Ocean countered by stating that they could deliver the first four submarines before the retirement of the old fleet and complete the entire fleet of 12 submarines by 2043.
The Canadian government is prioritizing the diversification of trading relationships and strengthening the economy through defense industrial base rebuilding. Both companies have highlighted their commitment to establishing long-term partnerships with Canada in various sectors.
The decision on the submarine contract is expected next year at the earliest, with factors such as delivery schedule, interoperability, and industrial benefits for Canada being considered. TKMS’s current engagements in building submarines for Germany and Norway could potentially impact their ability to deliver to Canada within the desired timeline.
Overall, the competition to build Canada’s new fleet of submarines is heating up as both Hanwha Ocean and TKMS present their proposals for consideration. The Canadian government is carefully evaluating all aspects before making a final decision on the contract.
