Hanwha Competes for Canadian Submarine Contract with Rocket and Steel Package

Hanwha Ocean's Jangbogo-III Batch-II submarine [Photo: Hanwha Ocean]

Hanwha has introduced a "rocket" component in its bid for the Canadian submarine contract. In addition to supplying submarines, the company proposed support for Canadian rocket launches, local production of military vehicles, and steel purchases. This strategy aims to differentiate Hanwha from German competitors by emphasizing job creation and manufacturing benefits in defense contracts.
According to Bloomberg on May 28, Hanwha is competing against Germany's ThyssenKrupp Marine Systems for a submarine procurement program that could involve up to 12 vessels.
Glen Copeland, CEO of Hanwha Defense Canada, estimated the cost for the 12 submarines at approximately CAD 25 billion (about KRW 26 trillion). He noted that the total project cost, including support and maintenance, could reach between CAD 100 billion and CAD 120 billion (approximately KRW 104 trillion to KRW 125 trillion).
Hanwha's differentiation strategy includes a focus on space. Hanwha Aerospace plans to sign a memorandum of understanding (MOU) with Maritime Launch Services, a Canadian spaceport operator. In an interview with Bloomberg, Copeland stated, "We aim to assist Canada in securing its own satellite launch capabilities."
Currently, Canada lacks a domestic rocket launch infrastructure, relying on foreign companies like SpaceX for satellite launches. The Canadian government recently decided to develop a commercial spaceport in Nova Scotia, and Hanwha intends to provide the necessary launch technology.
Copeland emphasized, "We will invest in rocket technology to expedite Canada's launch capabilities." He added, "This investment will proceed regardless of the outcome of the submarine contract."
Hanwha also proposed local contributions, including the production of military vehicles in Canada and purchasing steel products from Algoma Steel in Ontario. This initiative aims to partially offset revenue declines in Canada's steel and manufacturing sectors, which are under pressure from U.S. tariffs.
The Canadian government plans to make a decision on the submarine project by the end of June. Prime Minister Mark Carney announced this timeline on May 27. Copeland mentioned, "I have heard that the scoring and evaluation processes are complete, and the proposal is moving to the cabinet stage." He added, "Currently, the likelihood of ordering all 12 submarines appears high."
Hanwha is also emphasizing its competitiveness in terms of price and delivery. Copeland stated, "Hanwha's submarines can be delivered faster and at a lower cost than those from ThyssenKrupp Marine Systems." The urgency of the Canadian Navy's need for enhanced capabilities aligns with Hanwha's argument for rapid supply.

* This article has been translated by AI.

AJP