Canada Considers Split Order for 60 Trillion Won Submarine Project Between Hanwha and Germany
The Canadian government is reviewing a split order for its next-generation submarine project, valued at up to 60 trillion won. This plan would allocate six submarines to Hanwha Ocean and six to Germany's ThyssenKrupp Marine Systems. Concerns arise within Korea’s defense sector regarding potential reductions in economies of scale and profitability. The CPSP aims to replace the four decommissioning Victoria-class submarines by the mid-2030s, with the final contractor selection expected by June following proposals submitted on March 2.
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Canada is considering a split order for its next-generation submarine procurement project (CPSP), valued at up to 60 trillion won, allocating six submarines to Hanwha Ocean and six to Germany's ThyssenKrupp Marine Systems. This decision raises concerns in Korea's defense industry about reduced economies of scale and impacts on profitability.
The CPSP involves building 12 diesel submarines to replace four Victoria-class submarines by the mid-2030s. Final contractor selection is expected by June after proposals were submitted on March 2. Canada aims to leverage this project to enhance domestic manufacturing while reducing reliance on the U.S.
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