Seongnam: Canada's minister responsible for defense procurement, Stephen Fuhr, on Monday visited Hanwha Ocean Co.'s shipyard in South Korea to assess the company's construction capabilities as Ottawa seeks to pick a supplier for a major submarine acquisition project, the company said. The visit to Hanwha's shipyard in Geoje, about 330 kilometers southeast of Seoul, comes as Hanwha Ocean and Germany's Thyssenkrupp Marine Systems (TKMS) were reportedly shortlisted last summer for the Canadian Patrol Submarine Project (CPSP).
According to Yonhap News Agency, the finalists are required to submit their proposals to the Canadian government by March. The CPSP is a major defense program aimed at introducing up to 12 submarines in the 3,000-ton class, with an estimated value of 60 trillion won (US$41 billion). The project also includes lifetime maintenance and support. During his visit, Fuhr boarded the 3,600-ton Jang Bogo-III Batch-II submarine Jang Yeong-sil, which Hanwha Ocean has proposed for the Canadian project. He also toured the company's shipyard and automation facilities.
Fuhr described the visit as an amazing experience after boarding the submarine, praising its advanced technologies, the company said. The minister reiterated his call for cooperation with South Korea in the automotive sector as part of offset arrangements. According to Hanwha, Fuhr said Canada hopes to use the submarine project as an opportunity to deepen cooperation in the auto industry and expand broader economic partnerships.
Offset requirements refer to policies under which sellers are expected to provide industrial benefits, such as technology transfers, to the purchasing country as part of a defense contract. Fuhr was also quoted by the company as saying that Canada will prioritize which country can deliver the greatest economic value, as his country is currently restructuring its economic framework, with job creation and economic opportunities being critical.
Ted Kirkpatrick, vice president of Ontario Shipyards, said the visit helped identify ways to effectively utilize Canadian shipyard facilities and workforce by benchmarking Hanwha Ocean's shipbuilding capabilities and performance. In preparation for the CPSP bid, Hanwha Ocean and Hanwha Systems signed memorandums of understanding with five Canadian companies last month for strategic investment and cooperation in the fields of steelmaking, artificial intelligence (AI), and aerospace.
"We view Minister Fuhr's visit as a field inspection by the Canadian government to assess whether Hanwha Ocean is capable of carrying out the CPSP project," said Hanwha Ocean Chief Executive Officer (CEO) Kim Hee-cheul. "We emphasized that Hanwha Ocean can not only provide optimal solutions for the Canadian Navy but also serve as a trusted partner that can grow together with Canada."