Hanwha Ocean and HD Hyundai Heavy Industries have been selected as the preferred negotiators for a Canadian submarine contract worth $14 billion (approximately 20 trillion won).
According to the defense industry on the 26th, Hanwha Ocean and HD Hyundai Heavy Industries have been appointed as preferred negotiators for the Canadian Patrol Submarine Project (CPSP) along with the German corporation Thyssenkrupp Marine Systems (TKMS).
This project aims to build diesel submarines to replace four Victoria-class submarines set to be decommissioned in the mid-2030s. The contract for acquiring up to 12 submarines alone could reach 20 trillion won. Considering the operational and maintenance expenses over the next 30 years, the contract size could increase to as much as 60 trillion won. If they succeed in the final bid, it will become the largest single defense export contract in history.
The selection of the preferred negotiators appears to be significantly influenced by the collaboration of the two corporations that represent Korea. Last year, during the Australian frigate project bidding, they both bid separately and failed.
For the Canadian project, the two corporations formed a 'one team' centered around the Defense Acquisition Program Administration. Hanwha Ocean leads the project, while HD Hyundai Heavy Industries provides support.
The Canadian government is expected to finalize the contract after an additional assessment of the bidders. The contract is projected to be signed in 2028, but there is a possibility that an early contract could be signed as soon as next year.
Jeong Seung-kyun, Vice President of Hanwha Ocean's Special Ship Business Division, noted, 'Hanwha Ocean is dedicating itself to winning the CPSP project as a 'one team' with support from the Ministry of National Defense, the Defense Acquisition Program Administration, the Navy, and even the National Assembly, and this shortlist selection is the fruit of that effort.'