Hanwha Ocean sprints to outpace Germany for $40B Canadian submarine mega deal

This article is by Sarah Chea and read by an artificial voice. Hanwha Ocean is entering the final stretch of its campaign for Canada's $40 billion submarine bidding, vying with Germany, amid an intensified race ahead of the announcement of the preferred bidder expected in a month. The Korean company said Sunday that it amassed strong interest from Canadian government officials and industrial magnates at CANSEC 2026, Canada's defense and security exhibition that ran for two days starting Wednesday in Ottawa, where the company spotlighted the operational capabilities of the KSS-III submarine, currently in service with the Republic of Korea Navy. The KSS-III is the world's first diesel-electric submarine to integrate both an air-independent propulsion system and lithium-ion battery technology, which is also regarded as a platform suitable for the Royal Canadian Navy's operational requirements for its future submarine fleet. Victor Fedeli, Ontario's Minister of Economic Development, visited Hanwha Ocean's booth during the exhibition, along with executives from major defense contractors like Seaspan, Irving Shipbuilding, Babcock Canada and CAE, as well as representatives from Invest Nova Scotia and the University of Waterloo. Hanwha Ocean promoted that if the Korean consortium is selected for the Canadian Patrol Submarine Project (CPSP), it could generate more than 22,500 jobs annually and contribute roughly $94 billion to Canada's GDP over the life of the program. "Defense and aerospace account for approximately 6 percent of Nova Scotia's provincial GDP, with over 17,000 skilled professionals employed in the sector," said Colton LeBlanc, Minister of Growth and Development for the province of Nova Scotia, Canada. "Any opportunity to collaborate and support your initiatives matters to us — and the door is open." Flavio Volpe, president of Canada's Automotive Parts Manufacturers' Association (APMA), also emphasized Korea's industrial cooperation with Canada during his visit to the booth on Wednesday. "We also think that this agreement between Hanwha and the APMA is a window to a bridge for further Korean-Canadian cooperation. We look forward to decades of building this country together with our Korean friends." The CPSP, aimed at replacing the Royal Canadian Navy's aging submarine fleet, calls for the acquisition of 12 submarines in the 3,000-ton class and is valued at up to 60 trillion won ($43 billion). Hanwha Ocean has advanced to the final round alongside Germany's Thyssenkrupp Marine Systems, with a decision on the preferred bidder expected in late June.