By David Dunlop, 23 May 2026
As we are quickly approaching the decision by Canada and the Carney government coming next month, I believe this article, "Inside the Yard that could Very Well Build Canada's Next Submarine Fleet," published in Vanguard Magazine is important. I am sending a link [see below] to Broadsides forum members so they can read it and discuss.
This article is about the Hanwha Ocean yard that, as noted, could very well build Canada's next submarine fleet. As it stands, the build is rapidly coming down to a decision in June 2026 on these two companies. South Korea's Hanwha Ocean's KSS-III Submarine VS Germany's TKMS Type 212CD Submarine. Both companies have excellent yards and Canada could do no better than either one of them as the winning bid. With this article, and in my own opinion, Hanwha Ocean seems to have a slight edge. It will be exciting to see which company Canada finally chooses! Please feel free to discuss with forum members as to your own opinions on this article.
Image: The second of the KSS-III class submarines being built for the South Korean navy at sea in an image uploaded in April 2023. The KSS-III is one of the prospective contenders for Canada's submarine replacement project. Credit: Republic of Korea Defense Acquisition Program Administration
6 thoughts on “Hanwha’s Shipyard”
Thank you David for flagging this article and inviting commentary. I certainly am impressed with the KSS-III from everything I have read, as well as with Hanwha Ocean’s approach and behaviour in trying to enter a new and growing market. I worry about how politics may become prominent in Canada’s decision. Also of concern is the announced decision point may slip to the right, as the challenges of negotiating a contract without having a binding proposal are to be achieved.
Hello Howie! You are absolutely correct. This decision by the Carney government scheduled for the end of June 2026 is truly political. Which bid will be best for Canada’s GDP in the long term. Companies and countries can offer the world to us, but once a contract is signed with either Hanwha Ocean or TKMS, the really hard work will begin. On the surface Hanwha Ocean’s bid seems to be the better option. The problem is for Hanwha Ocean to live up to all of its commitments for this to work in Canada’s favour contractually. The same goes for TKMS as well. It always seems though, that once military contracts are signed, things tend to slip to the right or never come to pass at all. Let’s hope that whichever company wins this bid, things will quickly ramp up so that the RCN can plan for a modern, better, strategic and a more reliable AIP fleet!
Does anyone else worry, as I do, about geopolitical risk associated with the Korean bid? Korea is on China’s doorstep and the Chinese are clearly preparing for a major war against their neighbors and against the west. Five years from now, will Korea be in a position to deliver?
Some might argue that similar concerns apply to Europe; but I think that that is clearly untrue; aside from unleashing nuclear winter, Russia cannot seriously threaten Europe. They are even losing to Ukraine!
I do, glad to know I am not the only one.
I have also learned recently about an agreement between German TKMS and Spanish Navantia to cooperate on submarine shipbuilding. This opens a door for TKMS to keep on track with both the Canadian Patrol Submarines and/or future orders.
Michael,
I understand your concern about the potential vulnerability of a Korean-based supply chain.
However, there may be some who interpret this concern as follows: notwithstanding whatever our ongoing foreign and defence policy reviews may come up with, Canada should stay away from areas of potential conflict and build our navy for use in theatres – say Europe – where they are not essential, because, as you say, there is nothing really to fear from Russia.
I would assume that a true re-balancing of Canada’s operational focus to the Indo-Pacific region would be intended to help deter any overt PRC aggression towards Taiwan and/or South Korea, rather than to sit safely on the sidelines in Europe.
While this is a concern, the KSIII is largely derived from German design and a lot of components are licensed copies. That said, yes there is a chunk of South Korean gear inside them too.