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Hanwha, Babcock pitch Korea-UK-Canada partnership for $43 bil. submarine deal
Hanwha Ocean and Babcock officials pose during an annual meeting between senior defense officials from Korea and the United Kingdom in London, Jan. 13. Courtesy of Hanwha Group
By Park Jae-hyuk
Companies vow to create Canadian jobs, long-term industrial benefits
Hanwha Ocean and British defense firm Babcock have proposed a trilateral cooperative agreement between Korea, the United Kingdom and Canada to supply patrol submarines for the Royal Canadian Navy.
The partnership proposal is the latest effort by the Korean shipbuilder in its ongoing competition with Germany’s TKMS to secure Canada’s order for 12 submarines worth 60 billion Canadian dollars ($43 billion).
The deal would mark the largest single contract in Korea’s defense export history if successful. Hanwha Ocean and the Korean government have been mobilizing all possible means and seeking support from other major companies, such as Hyundai Motor and Korean Air, to meet Canadian expectations in various sectors.
Officials at Hanwha Ocean said it made the proposal together with Babcock following last week’s meeting on the sidelines of annual bilateral talks between senior defense officials from Korea and the U.K. in London.
"The Canadian Patrol Submarine Project (CPSP) is not just about delivering a submarine platform. It is about building long-term industrial capability and skilled jobs in Canada," said Eoh Sung-chul, president of Hanwha Ocean's naval ship business.
"Through our partnership with Babcock, and with Babcock Canada at the center of localization, we are committed to supporting sovereign sustainment and lasting workforce development for Canada."
According to the Defense Acquisition Program Administration, Korean and U.K. defense officials held in-depth discussions on Jan. 13 on the strategic partnership between Hanwha Ocean and Babcock.
Last September, the two companies signed an exclusive teaming agreement under which the Korean firm would bring a proven, in-service KSS-III submarine platform and extensive shipbuilding expertise, while the British firm would provide sustainment, maintenance and lifecycle support as well as critical subsystems, including the weapon launching and handling system and key torpedo tube components.
By pledging Canadian jobs, skills transfer and in-country sustainment, they said their partnership reflects close alignment on localization, the creation of long-term employment pathways for Canadian workers and sovereign sustainment, which means the ability for a country to design, maintain and develop its own defense assets.
"By bringing together Korean, British and Canadian industrial expertise, this partnership supports Canada’s ability to operate seamlessly with allies across both the NATO and Indo-Pacific regions," Eoh said. "It reinforces Canada’s role as a trusted defense partner while ensuring that sovereign sustainment, skilled jobs and long-term industrial capability are firmly rooted at home."
Hanwha also emphasized that the proposed trilateral cooperation model integrates maritime security, economic security and sovereign sustainment into a single delivery framework.
"This trilateral model is designed to deliver sustained, high-quality employment in Canada across the full submarine lifecycle, spanning MRO (maintenance, repair and overhaul), supply chain participation, engineering support and workforce skills development, while embedding long-term industrial capability within Canada’s defense ecosystem," a company official said.