Recently, South Korea’s Hanwha Ocean announced that its board of directors passed a resolution to establish a Canadian subsidiary during a recent meeting. This move is aimed at responding to the Canadian government’s ongoing large-scale procurement program for next-generation patrol submarines (CPSP) and preparing a forward base to secure formal orders.
Currently, the Canadian Navy operates four 2,400-ton Victoria-class submarines acquired from the British Navy in 1998. To replace these four submarines, the Canadian government is advancing a program worth up to $45 billion for the design, construction, and maintenance (full lifecycle) of 12 new conventionally powered submarines with under-ice operational capabilities. The construction cost of the submarines accounts for approximately one-third to half of the total project cost.
According to Canada’s ordering conditions, companies building these new submarines must procure Canadian-made equipment, collaborate with Canadian small and medium-sized enterprises (SMEs) and Indigenous businesses, and invest in technological development. To this end, Hanwha Ocean has been actively pursuing partnerships with Canadian defense companies, particularly through technical cooperation, to secure this major order.
Hanwha Ocean previously stated plans to establish an in-service support (ISS) center in Canada and committed to providing maintenance and performance enhancement support for over 30 years. This goes beyond simply exporting products to Canada by offering localized maintenance solutions.
It is reported that Hanwha Ocean has been promoting cooperation and technical exchanges with Canadian defense companies since last year. In May 2023, Hanwha Ocean, together with Hanwha Aerospace, participated in CANSEC 2024, Canada’s largest defense industry exhibition, showcasing its submarine platforms and technological capabilities. In November 2023, Canadian Navy Commander Angus Topshee visited Hanwha Ocean’s Geoje shipyard, where the company presented its Jang Bogo-III (KSS-III) Batch-II submarine production line and related underwater technologies. The two sides discussed technology transfer and operational strategies.
This year, Hanwha Ocean has proposed tailored solutions for the Canadian Navy’s operational environment, accelerating its efforts to secure the order. In May 2024, as the only South Korean shipbuilder participating in CANSEC 2025, Hanwha Ocean publicly displayed a Canadian patrol submarine model based on the Jang Bogo-III (KSS-III) Batch-II submarine. The company also signed a memorandum of understanding (MOU) with a Canadian defense firm during the exhibition, strengthening local partnerships.
The establishment of a Canadian subsidiary reflects Hanwha Ocean’s strategy to leverage targeted localization and long-term maintenance capabilities to expand its presence in the global defense market.
It is reported that Hanwha Ocean will operate its Americas subsidiary in Houston, USA, alongside the newly established Canadian branch.
A Hanwha Ocean representative stated, “To participate in Canada’s defense projects, Hanwha Ocean plans to establish a local subsidiary. This decision is unrelated to tariffs.”
Hanwha Ocean is the eighth company globally to independently develop and build 3,000-ton submarines and ranks as the world’s fifth-largest submarine exporter. It has executed the Republic of Korea Navy’s Jang Bogo-class submarine I, II, and III projects and began exporting submarines overseas in 2011, making South Korea the fifth country in the world to export submarines.
