Canada Explores Submarine Procurement with Hanwha Ocean

On February 2, 2026, Stephen Fuhr, Canada’s Secretary of State for Defence Procurement, led a delegation of over 30 representatives from Canadian government and industry to Hanwha Ocean’s shipyard in Geoje, South Korea. This visit was part of Canada’s multibillion-dollar Canadian Patrol Submarine Project (CPSP), aimed at replacing its aging Victoria Class submarines. The delegation included officials from major Canadian shipbuilders such as Ontario Shipyards, Irving Shipbuilding, and Davie.

Canadian Defense Procurement Special Envoy Visits Hanwha Ocean's Geoje PlantCanada’s secretary of state visits Hanwha Ocean shipyardCanada's defense procurement minister tours Hanwha Ocean shipyard

During the visit, Fuhr toured Hanwha Ocean’s advanced shipbuilding facilities, which include automated production lines and welding robots. He also boarded the KSS-III submarine, which is currently undergoing sea trials. Hanwha Ocean is proposing this submarine as a solution for Canada’s CPSP, emphasizing its capabilities in underwater surveillance and Arctic operations. The company claims that it can deliver four KSS-III submarines by 2035, with a total of 12 submarines completed by 2043.

Canada’s secretary of state visits Hanwha Ocean shipyardCanada's defense procurement minister tours Hanwha Ocean shipyardCanadian Defense Procurement Special Envoy Visits Hanwha Ocean's Geoje Plant

Hanwha Ocean highlighted that the CPSP represents a generational opportunity for Canada to strengthen its economic ties with South Korea. The company projects that its investments related to the CPSP could create over 200,000 person-years of employment in Canada between 2026 and 2040, averaging approximately 15,000 jobs annually. This initiative is positioned not only as a defense procurement project but also as a means to enhance cooperation in various sectors, including shipbuilding, aerospace, and advanced manufacturing.

Canada’s secretary of state visits Hanwha Ocean shipyardCanada's defense procurement minister tours Hanwha Ocean shipyardCanadian Defense Procurement Special Envoy Visits Hanwha Ocean's Geoje Plant

Fuhr noted the importance of selecting a partner that offers the best overall economic opportunity for Canada, stating, “The CPSP has developed into a government-to-government competition.” Hanwha Ocean CEO Kim Hee-cheul expressed confidence in their ability to provide a best-in-class submarine solution while fostering a long-term partnership with Canada.

Canada's defense procurement minister tours Hanwha Ocean shipyard

While the visit was largely positive, some critics have raised concerns about the long-term implications of relying on foreign suppliers for national defense capabilities. Questions have been raised regarding the potential impact on local shipbuilding industries and the strategic autonomy of Canada in defense matters.

Canadian Defense Procurement Special Envoy Visits Hanwha Ocean's Geoje Plant

• “It was an incredible experience. The internal technology was impressive.” — Stephen Fuhr, Canada’s Secretary of State for Defence Procurement

Canadian Defense Procurement Special Envoy Visits Hanwha Ocean's Geoje Plant

• “We are a trusted partner that provides optimal solutions to the Royal Canadian Navy while growing together with Canadian industry.” — Kim Hee-cheul, CEO of Hanwha Ocean

Canadian Defense Procurement Special Envoy Visits Hanwha Ocean's Geoje Plant

Following the visit, Hanwha Ocean and its partners are expected to continue discussions on strategic investments and collaborations with Canadian companies. The Canadian government is in the late stages of evaluating proposals for the CPSP, with a focus on cost, delivery timelines, and economic benefits for Canada.

Canada’s secretary of state visits Hanwha Ocean shipyard