At a press conference in Berlin, Canadian Prime Minister Mark Carney announced that Canada has shortlisted two contenders for the Canadian Patrol Submarine Project (CPSP): Hanwha Ocean Co., Ltd. of South Korea and a German–Norwegian consortium led by ThyssenKrupp Marine Systems (TKMS).
The program, valued at up to CAD 60 billion, is intended to replace the aging Victoria-class submarines.
Prime Minister Carney stressed that bidders must demonstrate the ability to operate under “very demanding conditions” on all three Canadian coasts. He explained that this was the basis on which the field narrowed quickly to just two competitors.
Carney and Canada’s defense and industry ministers will visit the TKMS shipyard in Kiel, Germany, and Carney will travel to Hanwha’s shipbuilding facilities in South Korea in October.
A Canadian official said that return on investment will be central to the evaluation. “We are managing that risk,” the official stated.
In a separate statement, Hanwha Ocean confirmed its proposal for the CPSP. The company is offering the KSS-III Batch-II, a 3,000-ton diesel-electric submarine equipped with Air-Independent Propulsion and lithium-ion batteries.
Hanwha said the design allows more than three weeks of submerged endurance and a range of 7,000 nautical miles, enabling operations in the Pacific, Atlantic, and Arctic. The company noted that the design includes vertical launch systems capable of deploying submarine-launched ballistic missiles.
Hanwha Ocean stated that it had received positive feedback from the Royal Canadian Navy regarding the marketability of the KSS-III Batch-II, its delivery potential, and localization strategy.
While submarine delivery typically requires about nine years from contract signing, Hanwha said it could shorten the timeline to six years. The company added that it plans to establish a local Integrated Support Solution center in Canada for operations, maintenance, and sustainment.
To strengthen its position, Hanwha Ocean signed a strategic partnership with Babcock International Group in November 2024 and concluded memoranda of understanding with CAE, BlackBerry, and L3 Harris MAPPS. The company said these steps form part of its broader effort to compete successfully in Canada’s submarine and in-service support markets.
In addition to the submarine announcement, Canada and Germany signed a declaration on critical minerals cooperation. Carney also confirmed nearly half a trillion dollars in Canadian investments in energy, port, and digital infrastructure projects designed to support supply chain resilience.
Hanwha Ocean Co., Ltd. is a South Korean corporation headquartered in Geoje, South Gyeongsang Province. It is part of Hanwha Group, one of South Korea’s largest conglomerates, and provides shipbuilding and marine engineering services across commercial, defense, and offshore sectors.
ThyssenKrupp Marine Systems GmbH is a German limited liability company within the ThyssenKrupp AG group, headquartered in Kiel. It designs and builds submarines and surface vessels and maintains partnerships with several European governments and defense industries.
Babcock International Group plc is a British public limited company headquartered in London. It provides engineering support and services to defense, nuclear, and critical infrastructure sectors worldwide.