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Hanwha Teams With Babcock in Push for Canada Sub Deal, Touting 200,000 Jobs

The partners propose a localized KSS-III sustainment model to align with Ottawa’s bid criteria.

Overview

  • Hanwha Ocean and Babcock Canada announced a joint approach for the Canadian Patrol Submarine Project focused on sovereign sustainment and long-term employment.
  • Babcock will lead localization efforts, including developing Canadian solutions to patriate its weapons handling and launch discharge system for Hanwha’s KSS-III platform.
  • Hanwha says it could deliver four KSS-III submarines by 2035 if contracted in 2026 and complete all 12 by 2043, estimating about $1 billion in savings from earlier Victoria-class retirement.
  • Ontario economic development minister Victor Fedeli toured Hanwha’s Geoje shipyard, where the company outlined technology transfer and localized maintenance plans tied to Ontario manufacturing.
  • Hanwha projects more than 200,000 cumulative Canadian jobs from 2026 to 2040 if selected, citing KPMG, and says it has signed over 10 MoUs as it competes with Thyssenkrupp for a roughly C$60 billion, 12-boat diesel-submarine program that weights economic benefits at 15 percent.