The Canadian government has reportedly selected Germany's TKMS (formerly ThyssenKrupp Marine Systems) as the preferred bidder for its next-generation submarine acquisition program. Korea's Hanwha Ocean and HD Hyundai Heavy Industries appear increasingly likely to come up short in the final competition.
The Globe and Mail, a leading Canadian daily, reported on the 6th (local time) that the Canadian government selected Germany's TKMS as the preferred bidder for the Canadian Patrol Submarines Project (CPSP), a next-generation submarine acquisition program.
According to the report, Canadian Prime Minister Mark Carney will at 5:10 p.m. that day (5:10 a.m. on the 7th Korea time) announce plans to acquire new diesel-powered submarines to replace the aging Victoria-class submarines, and will also reveal the CPSP preferred bidder.
The CPSP is a major program to replace four 2,400-ton Victoria-class submarines operated by the Royal Canadian Navy with up to twelve 3,000-ton diesel submarines by the mid-2030s. Including submarine acquisition expense and 30 years of maintenance, repair and overhaul (MRO) expense, the program is estimated by the Canadian Navy to total up to 60 billion Canadian dollars (about 60 trillion won).
In this program, Hanwha Ocean and HD Hyundai Heavy Industries made the shortlist and faced off against TKMS in the final round. The Korean firms entered the bidding highlighting strong technology and relatively fast delivery capability, but Germany appears to have ultimately gained the upper hand.
Industry observers analyze that Canada's consideration of strengthening security cooperation with Germany, a member of the North Atlantic Treaty Organization (NATO), influenced the final decision.
However, the Canadian government has not yet made an official announcement. A Hanwha Ocean official said, "We are currently assessing the local situation," and added, "We have not received any official contact (from the Canadian government or others)."