Canada nears decision on Korean, German submarine bids
Canada is expected to select a preferred bidder within 30 days for its $39.7 billion submarine procurement program, choosing between South Korea's Hanwha Ocean and Germany's Thyssenkrupp Marine Systems. The decision will grant one bidder exclusive negotiations for supplying up to 12 submarines to replace Canada’s aging Victoria-class vessels, with industrial benefits and long-term maintenance playing key roles in the final choice.
Canada is set to finalize its submarine procurement decision within 30 days, selecting between South Korea’s Hanwha Ocean and Germany’s Thyssenkrupp Marine Systems for a contract valued at up to $79.4 billion over several decades. The Canadian Patrol Submarine Project aims to acquire up to 12 conventionally powered submarines to replace the Royal Canadian Navy’s four aging Victoria-class vessels. The program includes infrastructure and long-term maintenance, with South Korea estimating the total cost at 60 trillion won ($39.7 billion) or higher. Stephen Fuhr, Canada’s secretary of state for defence procurement, confirmed the timeline, stating the preferred bidder will enter detailed negotiations but not secure a final contract. Hanwha Ocean and Thyssenkrupp were previously identified as the only qualified suppliers. South Korea’s bid emphasizes submarine construction, government-backed financing, and broader industrial cooperation, while Germany highlights its NATO ties and European defense supply chains. Fuhr visited Hanwha Ocean’s shipyard in Geoje, South Korea, in February, touring production facilities and boarding the ROKS Jang Yeong-sil submarine during sea trials. He also inspected the South Korean Navy’s Submarine Force Command in Jinhae to assess training and maintenance capabilities. Hanwha Ocean has proposed a modified version of its Dosan Ahn Changho-class submarine, which is already in production, while Thyssenkrupp offers its new Type 212CD design for Germany and Norway. Canada requires submarines capable of operating in the Atlantic, Pacific, and Arctic oceans, with long-range, under-ice capability, and reliable maintenance. Both bidders have proposed industrial investments, with South Korea exploring partnerships in Canada’s automotive and transportation sectors, including hydrogen-powered commercial vehicles. The final decision hinges on factors like delivery speed, industrial benefits, and long-term operational support, with Canada prioritizing domestic job creation and defense industry growth.
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