On the morning of the 27th, the stock prices of Hanwha Ocean and HD Hyundai Heavy Industries are on the rise. This news comes as the teams reached the final stage in their bid for the Canadian submarine project (CPSP), valued at up to 60 trillion won.
As of 9:20 a.m. on the 27th, Hanwha Ocean is trading at 111,400 won, an increase of 3,600 won (3.34%) compared to the previous trading day.
At the same time, HD Hyundai Heavy Industries is trading at 482,000 won, up 14,000 won (2.99%) from the previous day.
Earlier, Hanwha Ocean and HD Hyundai Heavy Industries announced they have been shortlisted for the Canadian Navy's project to introduce 12 submarines of 3,000 tons. The final competitor is the German corporation Thyssenkrupp Marine Systems (TKMS).
The Canadian submarine project (CPSP) is a diesel submarine construction program intended to replace four Victoria-class submarines that are slated to retire in the mid-2030s. The contract for acquiring up to 12 submarines alone may reach as much as 20 trillion won. Considering the operating and maintenance expenses over the next 30 years, the total contract size is estimated at up to 60 trillion won.
Kang Kyung-tae, a researcher at Korea Investment & Securities, noted in a report on that day that "the Canadian government emphasizes quick and accurate delivery, so the manufacturing capability and power experience of the one team will stand out," and he assessed that the likelihood of Hanwha Ocean and HD Hyundai Heavy Industries being selected is high. The Canadian government has requested the first submarine be delivered by 2035.