Canada's 60 Trillion Won Submarine Project May Be Split Between South Korea and Germany

Scenario: Six Submarines Each from Hanwha Ocean and TKMS

Deployment Plans for the Pacific and Atlantic Oceans

There is speculation that Canada's submarine procurement project, worth up to 60 trillion won, could be divided between South Korea and Germany.

Stephen Fuhr, Secretary of State for Defence Procurement of Canada (fifth from the left), visited Hanwha Ocean Geoje Plant on the 2nd of last month and took a commemorative photo with the officials. Provided by Hanwha Ocean

On March 3, the Canadian daily newspaper The Globe and Mail reported, citing government sources, that the Canadian government is considering splitting the submarine order between South Korea and Germany. According to the report, the Canadian government is reviewing a scenario in which it would order a total of 12 submarines, with six each from South Korea and Germany.

Specifically, the plan being discussed involves deploying six 'Type 212CD' submarines, built by Germany's ThyssenKrupp Marine Systems (TKMS), to the Atlantic coast, while six 'KSS-III Batch-II' submarines from Hanwha Ocean would be deployed to the Pacific coast or the Indo-Pacific region.

The Globe and Mail stated, "Government sources indicated that the decision to split the contract will be evaluated based on the country's economic and military needs," and analyzed that, "If the contract is divided, Canada could gain economic benefits such as industrial investment from both South Korea and Germany."

The Canadian Patrol Submarine Project (CPSP) aims to procure up to 12 diesel-powered submarines to replace four Victoria-class submarines, which are scheduled to retire in the mid-2030s. The project is estimated to be worth up to approximately 60 trillion won.

Currently, a consortium of South Korea's Hanwha Ocean and HD Hyundai Heavy Industries and Germany's TKMS are in the final stages of competition, with the successful bidder expected to be selected as early as June this year.

It has also been reported that Canada has proposed industrial investment as a key condition to strengthen its domestic manufacturing base. Suggestions include the possibility of Hyundai Motor establishing a local plant in South Korea, and additional production facility investments by Volkswagen in Germany.

David McGuinty, Canadian Minister of National Defence, emphasized the fairness of the bidding process at a joint press conference held after the signing of the bilateral military and defense secret information protection agreement between South Korea and Canada last month, stating, "I want to confirm that this bid will proceed according to an independent and objective process."

A Hanwha Ocean official stated, "Procurement policies and methods are the prerogative and authority of the Canadian government."

This content was produced with the assistance of AI translation services.