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Hanwha–Babcock Partnership Targets Long-Term Industrial Growth in Canada

Credit: Hanwha

Hanwha Ocean and Babcock Canada are advancing a joint solution for the Canadian Patrol Submarine Project (CPSP) with a strong focus on Canadian jobs, skills development, and in-country sustainment. Hanwha Ocean, one of two shortlisted qualified bidders for the program, has teamed with Babcock Canada, the Royal Canadian Navy’s current submarine sustainment contractor and the country’s leading submarine support provider. Together, the partners are proposing a Canadian-first approach that places long-term employment, skills transfer, and domestic industrial participation at the center of delivery.

Advancing Sovereign Sustainment

Representatives from both companies recently met in London on the margins of the United Kingdom–Republic of Korea Defence Logistics Committee to explore sovereign sustainment models and long-term employment pathways for Canada. Discussions also focused on localization strategies, including the development of Canadian solutions to enable the in-country production of Babcock International Group’s Weapons Handling and Launch Discharge System, a critical subsystem of Hanwha Ocean’s KSS-III submarine platform.



Complementary Capabilities

Under the partnership, Hanwha Ocean brings a proven, in-service KSS-III submarine platform and extensive shipbuilding expertise. Babcock contributes deep submarine sustainment experience, a highly specialized Canadian workforce and supply chain, and critical subsystems such as the Weapons Handling and Launch Discharge System and key torpedo tube components. Working alongside Hanwha Ocean, Babcock will lead localization efforts in Canada to embed sovereign capability across the program.

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Long-Term Industrial and Workforce Impact

“CPSP is not just about delivering a submarine platform—it is about building long-term industrial capability and skilled jobs in Canada,” said Charlie SC Eoh, President of Naval Ship Business at Hanwha Ocean. Through the partnership, with Babcock at the center of localization, the companies aim to support sovereign sustainment and lasting workforce development. The trilateral collaboration between South Korea, the United Kingdom, and Canada is designed to generate sustained, high-quality employment over decades, spanning maintenance, repair and overhaul, supply-chain participation, engineering support, and skills development throughout the submarine lifecycle.

Economic Benefits for Canada

By combining Hanwha Ocean’s platform and shipbuilding expertise with Babcock’s sustainment capabilities, local footprint, and critical subsystems, the partnership is aligned with Canada’s Industrial and Technological Benefits (ITB) program and long-term naval requirements. “Delivering and operating a fleet of this scale will require significant long-term investment, creating a transformational economic opportunity for Canada,” said Tony March, CEO of Babcock Canada. He added that the team is committed to employing Canadians across operations, the supply chain, ITB investments, and future infrastructure, delivering a fully sovereign Canadian sustainment solution for generations.

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The CPSP and the KSS-III Platform

The CPSP is a flagship program to acquire 12 submarines to recapitalize the Royal Canadian Navy’s fleet and strengthen maritime sovereignty across the Pacific, Atlantic, and Arctic. Widely regarded as one of Canada’s most complex defense procurements, the program emphasizes industrial participation, sovereign sustainment, and workforce development. Hanwha Ocean’s KSS-III is a proven, in-service submarine currently in active production that meets and exceeds CPSP requirements, offering advanced underwater surveillance, Arctic deployability, extended range, and high endurance to ensure effective deterrence across all three oceans.

Fastest Delivery Schedule

Hanwha Ocean also offers the fastest delivery timeline among CPSP contenders. If contracted in 2026, four KSS-III submarines could be delivered before 2035, fully replacing Canada’s Victoria-class fleet and generating an estimated $1 billion in maintenance and support cost savings through earlier retirement. The remaining eight submarines would be delivered at a rate of one per year, completing the full 12-submarine fleet by 2043—well ahead of alternative options.

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