 |
A view of the 3,000-ton-class Jangbogo-III submarine, the first of its kind built with domestic Korean technology by Hanwha Ocean. (Photo courtesy of Hanwha Ocean) |
[Alpha Biz= Paul Lee] The South Korean government is preparing a joint visit to Canada later this month with senior executives from major companies, including Hanwha Ocean, as part of efforts to secure the Canadian Patrol Submarine Project (CPSP), a next-generation submarine program estimated to be worth up to 60 trillion won.
According to government and industry sources on Jan. 8, Presidential Chief of Staff Kang Hoon-sik and Minister of Trade, Industry and Energy Kim Jung-kwan are coordinating schedules to visit Canada for meetings with key officials, including Prime Minister Mark Carney and Ontario Premier Doug Ford. The trip is aimed at promoting a broader Korea–Canada industrial cooperation package linked to the CPSP bid and directly engaging Canadian decision-makers at the highest level. Kang is serving as President Lee Jae-myung’s special envoy for strategic economic cooperation.
The CPSP project involves the acquisition of up to 12 diesel-powered submarines in the 3,000-ton class. While the procurement contract itself is estimated at around 20 trillion won, total project costs—including maintenance, repair and overhaul (MRO) over a 30-year period—could reach as much as 60 trillion won. A consortium led by Hanwha Ocean and HD Hyundai Heavy Industries is competing against Germany’s Thyssenkrupp Marine Systems (TKMS). Hanwha Ocean is scheduled to hold a proposal briefing next month and submit its final bid by March.
Industry sources said senior executives from Hyundai Motor Group are also expected to join the delegation. This comes amid reports that the Canadian government has emphasized domestic industrial investment—including automobile manufacturing facilities—as part of its evaluation criteria.
Hyundai Motor currently has no production facilities in Canada, while Germany’s Volkswagen is constructing a battery cell plant in Ontario through its battery subsidiary PowerCo. Although Volkswagen announced the investment plan in late 2022 and initially delayed construction, the project has recently moved forward in earnest. Some analysts view this as part of a broader industrial package supporting TKMS’s submarine bid.
Korea already has a foothold in Canada’s battery sector, with LG Energy Solution having recently begun mass production at its Ontario battery plant. Beyond submarine performance, Hanwha Ocean and TKMS are engaged in intense competition over localization strategies. TKMS has partnered with Canadian marine components specialist Marmen to establish local production of hull structures and key mechanical components. Hanwha Ocean, meanwhile, has built cooperation in the submarine MRO sector with the Canadian arm of UK defense company Babcock, which has extensive experience in lifecycle maintenance of naval submarines in the UK and Australia.
During the upcoming visit, Hanwha Ocean is also said to be considering the signing of additional memoranda of understanding (MOUs) with Canadian suppliers to further strengthen its local industrial cooperation framework.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
