HD Hyundai Heavy Industries and Hanwha Ocean have formed a 'one team' to submit a joint bid proposal related to the modernization project of Canadian vessels. The two companies plan to target the Canadian submarine project worth between $20 billion and $24 billion (approximately 27 trillion to 33 trillion won).
On 6th (local time), Canadian broadcaster CBC reported that HD Hyundai Heavy Industries and Hanwha Ocean submitted a joint bid proposal to the Canadian federal government in early March for the replacement project of the navy's submarines.
Canada is proceeding with the 'Canadian patrol submarine project,' which involves the introduction of 8 to 12 submarines of 3,000 tons (t). There are plans to introduce the first new submarine by 2035, and it is reported that the proposal includes supplying a total of four Changbogo-III (KSS-III) submarines by 2035. This implies that multiple submarines will be provided more quickly than the plans set by the Canadian government.
The KSS-III submarine is the first 3,000t-class submarine built with domestic technology in 2018. Both HD Hyundai Heavy Industries and Hanwha Ocean possess the construction technology. HD Hyundai Heavy Industries has also developed a Canada-customized model (KSS-III CA) that incorporates lithium-ion batteries by modifying the submarine design.
The proposal submitted by the two companies also included plans to build maintenance facilities within Canada. This signifies the intention to create jobs for Canadians through facility investments. It is also reported that the proposal contains more favorable conditions than competitors regarding required budgets, delivery deadlines, maintenance, and crew training support.