HD Hyundai mounts push for Canada submarine project

The 3,000-ton class submarine Shin Chae-ho, the third ship of the KSS-III Batch-I program built by HD Hyundai Heavy Industries and delivered to the Republic of Korea Navy in April 2024, sails during a test in this undated photo. Courtesy of HD Hyundai

Major Korean engineering conglomerate HD Hyundai is stepping up last-ditch efforts with its key subsidiaries to help Korea win Canada’s new submarine construction project, according to industry sources.

The Canadian government has shortlisted Korea and Germany as final contenders before selecting a partner for its next-generation submarine fleet.

HD Hyundai Heavy Industries, the group’s shipbuilding arm and a member of the Korean bidding consortium alongside Hanwha Ocean, has presented an extensive package of industrial and technological benefits to Canada.

The company has proposed package deals worth trillions of won to support Korea’s bid and strengthen cooperation with Canadian partners.

The proposal includes providing technological consulting to Canadian shipbuilders, enabling local shipyards to independently carry out depot-level maintenance and repairs on submarines. HD Hyundai has also offered to transfer key submarine and warship technologies, along with advanced construction know-how for high-end naval assets.

In addition, the company has suggested joint research and development programs with Canadian universities and research institutions in areas such as shipbuilding, manufacturing, artificial intelligence and biotechnology. The initiative aims to enhance the global competitiveness of research capabilities in both countries.

HD Hyundai Oilbank, the group’s refining arm, has also pledged to import trillions of won worth of petroleum products from Canada during the development of the Canadian submarine program, further expanding bilateral cooperation in the energy sector.

“Securing industrial and technological benefit arrangements across as many sectors as possible is crucial for Korea to win the Canadian submarine project,” an HD Hyundai official said.

“This is not simply about exporting submarines, but about creating win-win outcomes for both countries in shipbuilding and energy.”