HD Hyundai impresses Canada's defense delegation in Korea's sub bid
Shipbuilding group offers to buy crude from North American country
Stephen Fuhr, second from right, Canada's secretary of state for defense procurement, examines miniatures of naval vessels developed by HD Hyundai Heavy Industries at HD Hyundai Global R&D Center in Seongnam, Gyeonggi Province, Wednesday. Courtesy of HD Hyundai
Canada's defense delegation got a firsthand look at HD Hyundai's naval ship technologies, which the top delegate described as "amazing," during their visit to the company's headquarters, Wednesday.
The delegation's visit was made ahead of Ottawa's upcoming decision on a contractor to supply next-generation patrol submarines for the Royal Canadian Navy. A Korean consortium led by Hanwha Ocean and HD Hyundai Heavy Industries (HHI) was shortlisted as a final contender for the bid.
The company said that Park Yong-yeol, head of HD HHI's Naval Ship Business Unit, welcomed the delegation including Stephen Fuhr, Canada's secretary of state for defense procurement, at the company headquarters in Seongnam, Gyeonggi Province. He introduced the shipbuilder's destroyers, frigates, submarines and unmanned surface vessels, as well as its artificial intelligence-powered autonomous navigation technology.
According to HD Hyundai, Fuhr showed a keen interest in the Korean firm's naval ship technologies and potential partnership for the submarine project, saying, "Amazing — I literally feel like I'm in the future."
HD HHI, a shipbuilding subsidiary of HD Hyundai, has teamed up with its rival Hanwha Ocean in a competition with Germany's TKMS to secure Canada's order of 12 patrol submarines worth 60 billion Canadian dollars ($43 billion). The deal, now being pursued as a government-to-government initiative, would mark the largest single contract in Korea's defense export history if finalized.
HD Hyundai has already announced its intention to import crude oil worth trillions of won from Canada if the country awards the submarine contract to Korea.
“HD HHI is a strategic partner with which the Canadian government can build long-term cooperation,” Park said. “Based on our world-class shipbuilding technology and business management capabilities, we have proposed various forms of collaboration that meet Canada's request to deliver high-quality submarines on time and support its industrial development.”
Fuhr toured Hanwha Ocean's Geoje Island shipyard in South Gyeongsang Province on Monday, and visited Hanwha Aerospace's facilities in Changwon, South Gyeongsang Province, the next day to learn more about Korea's defense capabilities ahead of Canada's planned deployment of about 250 infantry fighting vehicles by 2030.
According to sources familiar with the matter, Fuhr is scheduled to meet officials of LIG Nex1 and Korean Air during his stay here. LIG Nex1 reportedly proposed producing torpedoes in Canada, while Korean Air is said to be considering buying more aircraft from Bombardier.
On Monday, Fuhr reiterated Ottawa's request for expanded bilateral cooperation in the automotive sector, which had prompted Hyundai Motor Group Executive Chair Chung Euisun to join the Korean government delegation's visit to Canada last week. The Canadian government has asked Hyundai Motor to invest in setting up production in Canada, while asking Germany to expand Volkswagen-related car manufacturing in the country.