Hanwha–Babcock partnership to support jobs and long-term industrial benefits in Canada

Hanwha Ocean, one of two shortlisted qualified bidders in the Canadian Patrol Submarine Project (CPSP), and Babcock Canada (Babcock), Canada’s leader in submarine support and prime contractor of the Royal Canadian Navy’s (RCN) current submarine sustainment contract, are pursuing a joint approach to the CPSP. The team’s proposed solution places long-term employment, skills transfer, and industrial participation in Canada at the core of its delivery.

On the sidelines of the United Kingdom–Republic of Korea Defence Logistics Committee in London, representatives from both companies met to explore and develop sovereign sustainment and long-term employment pathways in Canada. The team also discussed localization strategies, including the development of Canadian solutions to enable patriation of Babcock International Group’s Weapons Handling and Launch Discharge System, a critical component of Hanwha Ocean’s KSS-III submarine platform.

Under this partnership, Hanwha Ocean brings a proven, in-service KSS-III submarine platform, together with extensive shipbuilding expertise. Babcock brings deep submarine sustainment understanding and experience, a highly specialized Canadian workforce and supply chain, and critical subsystems, including the Weapons Handling and Launch Discharge System and key torpedo tube components.

Working alongside Hanwha Ocean, Babcock will lead localization efforts in Canada.

“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 our partnership, with Babcock at the center of localization, we are committed to supporting sovereign sustainment and lasting workforce development for Canada.”

This industry trilateral collaboration between South Korea, the United Kingdom, and Canada ensures that the CPSP generates sustained, high-quality employment for Canadian workers over decades, spanning MRO, supply-chain participation, engineering support, and skills development. The Hanwha–Babcock partnership embeds industrial capability and long-term employment across the full submarine lifecycle.

By combining Hanwha Ocean’s shipbuilding and platform expertise with Babcock’s sustainment capabilities, established local footprint, and critical subsystems, the partnership will deliver enduring economic and workforce benefits aligned with Canada’s Industrial and Technological Benefits (ITB) program objectives and long-term naval requirements.

“To successfully deliver and operate a fleet of this magnitude from coast to coast to coast, significant investment and commitment will be made, giving Canada a transformational opportunity with significant economic value,” said Tony March, CEO, Babcock Canada. “Our team is committed to employing Canadians across all lines of business, through our supply chain, ITB investments, and future infrastructure developments. Our Canadian specialists, alongside Hanwha Ocean, will deliver an all-encompassing, purpose-built, and sovereign Canadian sustainment solution that will meet our Nation’s defense and economic needs for generations to come.”

The CPSP is a flagship program aimed at acquiring 12 submarines to recapitalize the RCN’s fleet and strengthen Canada’s long-term maritime sovereignty across the Pacific, Atlantic, and Arctic. The CPSP is widely regarded as one of Canada’s most significant and complex defense procurement programs, strongly emphasizing industrial participation, sovereign sustainment, and long-term workforce development.

KSS-III Canadian Patrol Submarine 

Hanwha Ocean’s KSS-III is a proven, in-service, in-active production submarine that fully meets and exceeds all requirements for the CPSP. These include superior underwater surveillance capability and deployability in the Arctic with extended range and endurance that will provide stealth, persistence and lethality to ensure that Canada can detect, track, deter and, if necessary, defeat adversaries in all three of its oceans.

Importantly, Hanwha Ocean has the fastest delivery schedule, able to deliver four KSS-III submarines to fully replace Canada’s current Victoria-class fleet before 2035 if on contract in 2026. Earlier retirement of the Victoria-class fleet will result in estimated savings of approximately $1 billion on maintenance and support costs. The additional 8 submarines will be delivered at a rate of one per year, meaning the entire fleet of 12 submarines will be delivered to Canada by 2043. No other option can come anywhere close to this delivery schedule.

For more information, visit: www.kss-iii.ca

Hanwha Ocean

Hanwha Ocean is a leading global shipbuilder with more than four decades of experience in complex naval and commercial shipbuilding programs. Supported by its large-scale, integrated shipyard in Geoje, South Korea that spans 5 square kilometers and has more than 31,000 employees, the company combines proven industrial capacity with operational experience to deliver modern, in-service naval platforms backed by a resilient through-life support model.

Since its establishment in 1973, Hanwha Ocean has delivered more than 1,400 vessels worldwide, including over 110 naval ships, and has built deep expertise in the design, construction, and sustainment of submarines and surface combatants for the Republic of Korea Navy and other navies.

Hanwha is committed to establishing a robust and long-term partnership with the Government of Canada and Canadian industry in several strategic areas that will create jobs and economic growth, accelerate Canada’s defense capabilities, and enhance cooperation, partnership and supply chains between Canada and South Korea — a relationship that is becoming increasingly important, and one that supports the objectives of Canada’s Indo-Pacific Strategy.

Hanwha has teaming agreements, MOUs and contracts in place with more than a dozen Canadian companies, including Babcock Canada, BlackBerry, CAE, Curtiss-Wright Indal Technologies, Des Nedhe Group, Gastops, Hepburn Engineering, J Squared Technologies, L3Harris Canada, ModestTree and PCL Construction.

For more information, visit: www.HanwhaOcean.com

Babcock Canada 

Operating in Canada since 2008, Babcock Canada (Babcock) is a wholly owned subsidiary of Babcock International Group, a global defense, aerospace, and security company. For over 17 years, Babcock has been proud to play a critical role in supporting Canada’s safety and security, delivering engineering and critical support services to defense and civilian customers.

Drawing on decades of global experience, Babcock delivers fully integrated solutions tailored specifically for Canada and its unique environment across the land, marine, and aviation sectors.

In the marine industry, Babcock is proud to be a trusted partner of the Royal Canadian Navy and an undisputed leader in Canada’s submarine sustainment enterprise, leading the in-service support of the Victoria-class submarines throughout the course of the Victoria In-Service Support Contract.

Babcock’s work has generated over $3 billion in GDP impact on the Canadian economy and has maintained a total of 2,472 jobs annually, 55% of which are highly skilled. Babcock is committed to establishing partnerships with local universities, colleges, Indigenous communities, and small and medium-sized businesses to support skills development, training, and innovation.

At Babcock, we are proud to be a trusted partner of the Canadian Armed Forces and Armed Forces of allied nations around the world. Babcock’s mission is guided by the needs of our customers; we ensure their services and assets are equipped to fulfill their customers’ missions wherever, whenever, and however needed.

For more information, visit: babcockcanada.com