The competition to build a new fleet of submarines for the Royal Canadian Navy has entered a critical phase, with finalists required to submit their final proposals to the federal government by a recent Monday deadline. Canada intends to purchase up to 12 conventionally powered submarines, aiming for operational readiness by 2032.
This multibillion-dollar procurement is being accelerated due to the impending retirement of the aging Victoria-class submarines over the next decade. The two main competitors in this bidding process are Hanwha Oceans from South Korea and ThyssenKrupp Marine Systems (TKMS), which has support from both Germany and Norway.
Stephen Fuhr, Secretary of State for Defence Procurement, indicated in February that an announcement regarding the selection of the winning bid is expected this year. The Liberal government has signaled that the decision will also hinge on the economic and industrial benefits each proposal offers to Canada.
Canadian officials have undertaken visits to shipyards in both South Korea and Germany, while representatives from these nations have also traveled to Canada to discuss potential collaborations. Hanwha and South Korean officials have emphasized that securing the submarine contract could be a stepping stone towards a broader industrial partnership between Canada and South Korea. Meanwhile, TKMS has proposed the possibility of constructing some submarines within Canada.
Both companies have actively engaged with Canadian industry by forming partnerships with numerous local firms to collaborate on submarine-related work, should they win the contract. In recent months, they have been visibly promoting their bids across Canada. Hanwha has launched a large digital advertising campaign alongside bus shelter ads in downtown Ottawa, aiming to establish brand recognition in the Canadian market. TKMS, on the other hand, has taken the role of the primary sponsor for the annual Conference of Defence Associations Institute's conference held in Ottawa.
Tom Lawson, chair of the institute's board and a former chief of the Defence Staff, commented on the expedited procurement process. He noted that this accelerated timeline is beneficial for both companies involved. Lawson stated that while both contenders are committed to winning the contract, they are also strategizing their future plans should they not succeed.
Lawson emphasized that the competition is not critical for either company, as both Hanwha and TKMS have other submarine projects in development for different countries. Nonetheless, with billions of dollars at stake, he acknowledged that both companies will be vigorously advocating for their proposals.
This report highlights the strategic importance of the submarine procurement initiative to the Canadian government, aiming to enhance the capabilities of its naval forces while fostering economic relationships with the bidding companies. As the competition progresses towards a resolution, the outcome will have significant implications for Canada's defense landscape and industrial partnerships.
