HD Hyundai mobilizes full group resources to win Canada submarine contract

Attends Korea-Canada energy and resource supply chain cooperation forum

Vice Chairman Cho Suk emphasizes K-submarine excellence and world-class shipbuilding technology

Energy and machinery affiliates also deployed in contract bid

Canadian Industry Minister Melanie Joly and Canadian Ambassador to South Korea Philippe Lapointe visit HD Hyundai's Global R&D Center in November last year, touring models of future vessels, submarines and frigates alongside HD Hyundai Vice Chairman Cho Suk and HD Hyundai Heavy President Ju Won-ho. [HD Hyundai Heavy]

With a contractor for Canada's next-generation submarine program — the Canadian Patrol Submarine Project (CPSP), valued at up to 60 trillion won ($39.6 billion) — expected to be selected as early as the end of this month, HD Hyundai has launched a group-wide push to win the deal. The program calls for the construction of 12 submarines to replace Canada's aging fleet. The Korean consortium of Hanwha Ocean and HD Hyundai Heavy is locked in fierce competition with Germany's ThyssenKrupp Marine Systems (TKMS).

HD Hyundai participated Tuesday in the Korea-Canada Energy and Resource Supply Chain Cooperation Forum, jointly hosted by South Korea's Ministry of Trade, Industry and Energy and Canada's Department of Natural Resources in Ottawa, as part of its effort to support the submarine bid.

On the sidelines, Vice Chairman Cho Suk met with Canadian Senator Marty Deacon, chair of the Standing Senate Committee on National Security, Defence and Veterans Affairs (SECD) — the body responsible for reviewing and overseeing defense policy, national security and defense procurement in the Canadian Senate. Cho emphasized the superiority of Korean-built submarines and South Korea's world-leading shipbuilding capabilities, and pledged that HD Hyundai would take a leading role in future Korea-Canada cooperation in shipbuilding and defense.

At the same forum, HD Hyundai Oilbank said Canada is "the ideal partner for diversifying South Korea's resource supply chain," adding that combining its advanced refining facilities with Canadian heavy and extra-heavy crude would enable the production of high-value petroleum products. The company said it plans to steadily expand imports of Canadian crude and is reviewing upgrades to its refinery facilities to that end.

HD Construction Equipment proposed the establishment of a matching fund to allow HD Hyundai's autonomous and automated construction equipment solutions to be tested on Canadian government-funded mining and road construction projects, noting that a large number of Korean companies are expected to participate in mining investment in Canada. The unit is regarded as a key partner in Canadian mining and road infrastructure. It exported roughly 800 pieces of construction equipment — including excavators and forklifts — last year and plans to increase that figure to around 900 units this year.

An aerial view of HD Hyundai's Global R&D Center in Pangyo. [HD Hyundai]

HD Hyundai has also proposed a range of industrial cooperation packages tied to the CPSP. The company says it aims to work alongside Hanwha Ocean as part of Team Korea to deliver submarines that meet Canada's performance requirements on the government's preferred timeline, drawing on its world-class warship construction capabilities.

Earlier this year, the group announced plans centered on HD Hyundai Oilbank to import trillions of won worth of crude oil from Canadian producers over the life of the submarine program, while also pursuing joint research and development with leading Canadian universities and research institutions across shipbuilding, AI, biotech and other advanced fields. The overarching vision is to build a long-term bilateral cooperation model spanning shipbuilding, energy and research and development through offset trade arrangements.

HD Hyundai Heavy has proposed a cooperation framework covering warship operation, maintenance and the broader shipbuilding industry. The company has built up its capabilities through the Son Won-il-class (KSS-II, Type 214) and Dosan Ahn Chang-ho-class (KSS-III, 3,000-ton) submarine programs. In 2007, it became the first shipbuilder outside Germany to build and deliver a Son Won-il-class submarine. Last year, it also won a contract to upgrade the integrated combat systems of aging Son Won-il-class submarines with the latest technology.

In April 2024, HD Hyundai Heavy delivered the submarine Shin Chae-ho — a Dosan Ahn Chang-ho-class vessel — to the Navy, marking another milestone in the 3,000-ton submarine segment. Shin Chae-ho is capable of operating submarine-launched ballistic missiles (SLBMs) and was the first submarine of its class to be delivered on schedule.

The Canadian government is expected to select a final contractor before the federal parliament enters its summer recess at the end of this month. Hanwha Ocean, which is leading the Korean bid, is pursuing a package strategy that highlights its end-to-end capabilities — from submarine design and construction to maintenance — as well as the potential for local weapons production in Canada. The South Korean government is also lending support: Presidential Chief of Staff Kang Hoon-sik is visiting Canada as President Lee Jae Myung's special envoy for strategic economic cooperation.

keg@heraldcorp.com