[2025 MADEX] Hanwha Ocean Nears Polish Submarine Export Deal

MOU Signed with Polish Shipyards at MADEX
Hanwha Ocean Proposes Bold Terms Including Submarine Leasing and Local Production

Hanwha Ocean has signed a memorandum of understanding (MOU) with PGZ SW and Nauta Shipyard, both shipyards under the Polish state-owned defense group PGZ, to strengthen its business in Poland. The company is now considered to have secured a competitive edge in the 8 trillion won Orka project, Poland's submarine procurement program.

According to Hanwha Ocean on May 29, Eo Seongcheol, President and Head of the Special Ship Business Division at Hanwha Ocean, Marcin Ryngwelski, President of PGZ SW, and Monika Kozakiewicz, President of Nauta Shipyard, signed the MOU for cooperation on warship construction and maintenance at the International Maritime Defense Industry Exhibition (MADEX 2025), the largest defense exhibition in Korea, held the previous day.

The Orka project is an 8 trillion won program to introduce three submarines for the modernization of the Polish Navy. The preferred bidder is expected to be selected in the second quarter, with the final contractor to be chosen in September.

Last month, Hanwha Ocean held a press conference in Poland and unveiled an aggressive proposal. The company set its sights on winning an order for three next-generation submarines based on the Jangbogo (KSS)-III Batch-II platform. Hanwha Ocean also proposed leasing one KSS-I class submarine to Poland until delivery of the new vessels. The company offered a comprehensive solution, including the establishment of a permanent MRO (maintenance, repair, and overhaul) center in Poland and an investment of 100 million dollars (approximately 142.8 billion won). Affiliates Hanwha Aerospace and Hanwha Systems also participated in a local media day event to support Hanwha Ocean.

Hanwha Ocean plans to differentiate itself from European defense companies by offering integrated land, sea, and air solutions. The European Union is currently promoting the 'Buy European' policy, which encourages the purchase of European-made weapons. As a result, there are concerns that Korean companies may be at a disadvantage in the Orka project bidding process. However, domestic financial support is positive. In February last year, Korea increased the legal capital of the Export-Import Bank from 15 trillion won to 25 trillion won to expand support for Poland, and is also pursuing joint loans with domestic commercial banks. Both private and financial sectors have officially applied for financial support in response to the Polish government's requests.

Through this agreement, Hanwha Ocean aims to jointly pursue strategic cooperation opportunities not only for the Orka project but also for the modernization of Poland's naval shipbuilding industry and overseas exports. With PGZ SW, the company will seek cooperation in the joint development and export of offshore patrol vessels (OPVs), surface ships, support vessels, unmanned surface and underwater systems, and submarines optimized for overseas markets. With Nauta Shipyard, which already holds a significant share of the MRO market, the MOU is expected to establish a foundation for joint efforts to strengthen submarine maintenance capabilities in Poland. In particular, by working with more than 200 domestic partner SMEs with advanced technologies, Hanwha Ocean expects to contribute not only to the expansion of K-maritime defense capabilities, including technology transfer, maintenance, and localization for various warships and submarines, but also to the development of the Polish shipbuilding industry.

Eo Seongcheol, President and Head of the Special Ship Business Division at Hanwha Ocean, stated, "Cooperation with leading Polish companies goes beyond a simple technology partnership and will serve as a bridge for shipbuilding industry cooperation between Korea and Poland. We aim to create a new model of collaboration in the global defense market, going beyond winning the Orka submarine project."