Like the final two contestants on a Bachelorette season, Hanwha Ocean and ThyssenKrupp Marine Systems (TKMS) are pulling out all the stops to win Ottawa’s affections.
Driving the news: South Korea’s Hanwha Ocean formally launched Canadian operations this week as it tries to win the right to supply Canada with up to 12 naval submarines. The company also inked a deal with defence firm Babcock Canada to ensure things like maintenance, repair, and performance upgrades of the subs are done in Canada.
And, to prove it wants a long-term industrial commitment and not just a quick military fling, Hanwha is participating in a liquefied natural gas project in Newfoundland.
Not to be outdone, Germany’s TKMS, the other candidate to win the sub contract, is discussing a deal with other companies to offer Canada a potential multi-billion-dollar investment package extending beyond subs, into sectors like AI, mining, and batteries.
Germany’s defence minister has previously suggested that if TKMS wins the bid, his country could buy Bombardier jets and Canadian space systems in return.
Why it’s happening: With Ottawa focusing on defence, this isn’t just a chance for Hanwha and TKMS to get in on potentially the most expensive military purchase in Canadian history, it’s an opportunity to secure a long-term relationship with a big-time industrial spender.
Why it matters: The navy desperately needs new subs as its current fleet is near retirement and can barely stay in the water at a time when Canada’s Arctic sovereignty is under duress. The selection, which could be made this year, is a vital test that Ottawa can spend defence dollars wisely.—QH