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Ottawa Eyes Multibillion-Dollar Sub Deal as South Korea's Hanwha Steps Up

Ottawa is weighing a massive multibillion-dollar submarine contract that could reshape Canada's naval future. South Korea's Hanwha has put its hand up — and its hardware on display.

·ottown·3 min read
Ottawa Eyes Multibillion-Dollar Sub Deal as South Korea's Hanwha Steps Up
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Ottawa's Submarine Search Heats Up

Ottawa is at the centre of one of the most significant defence procurement decisions in recent Canadian history, with South Korea's Hanwha Ocean stepping forward to showcase its submarine capabilities as the federal government mulls a multibillion-dollar contract to modernize Canada's aging underwater fleet.

The display is part of an increasingly competitive courtship of Ottawa by foreign defence contractors eager to win what could be one of the largest military purchases Canada has ever made. Hanwha, a South Korean industrial giant with a growing defence arm, is making a strong case that it has the technology — and the industrial capacity — to deliver.

Why Canada Needs New Submarines

Canada's current Victoria-class submarines, acquired secondhand from the United Kingdom in the late 1990s, have had a troubled history — plagued by fires, mechanical failures, and lengthy stretches out of service. As Arctic sovereignty concerns mount and NATO allies press Canada to contribute more meaningfully to collective defence, the pressure to field a modern, capable submarine fleet has never been greater.

The federal government has signalled it is serious about addressing the gap. A new submarine program could cost tens of billions of dollars over the life of the contract, making it a prize that major defence manufacturers from Europe, Asia, and beyond are scrambling to secure.

Hanwha Makes Its Pitch

Hanwha Ocean — formerly Daewoo Shipbuilding & Marine Engineering — has been building submarines for decades, including the KSS-III, South Korea's most advanced domestically developed boat. By putting a physical vessel in front of Canadian decision-makers, Hanwha is sending a clear message: this isn't a paper proposal, it's a proven product.

The South Korean company joins a field that includes European heavyweights such as Germany's ThyssenKrupp Marine Systems and Spain's Navantia, all of whom are eager to plant their flags on a contract of this magnitude.

What's at Stake for Ottawa

Beyond the hardware, the decision carries major geopolitical and economic weight. Ottawa will be looking not just at which submarine performs best on paper, but at what industrial benefits a contract would bring to Canadian shipyards and suppliers — a requirement that has shaped major procurement decisions in the past.

The choice will also reflect where Canada sees its strategic partnerships heading. Deepening ties with South Korea through a landmark defence purchase would signal something meaningful about Ottawa's Indo-Pacific ambitions at a time when the government has been ramping up engagement across the region.

For Canadians, the stakes are tangible: a credible submarine force directly supports Canada's ability to patrol Arctic waters, protect maritime approaches, and hold up its end of alliance commitments that increasingly demand real capability rather than promises.

No final decision has been announced, but with Hanwha now visibly in the ring, Ottawa's submarine sweepstakes just got a lot more interesting to watch.

Source: CBC News via Google News Ottawa

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