Hanwha Ocean is reviewing the establishment of a branch in Canada and has secured a supply chain for equipment locally. This is interpreted as a plan to expand cooperation with local governments and corporations ahead of the bidding for the Canadian Patrol Submarine Project (CPSP).
According to the industry on the 21st, Hanwha Ocean has signed a supply contract for the Replenishment at Sea (RAS) system with Hepburn Engineering, headquartered in Toronto, Canada. The exact contract amount has not been disclosed but is reported to be worth several million dollars.
The RAS system primarily refers to the support that enables a warship to receive goods at sea during military operations, allowing it to engage in combat. It encompasses equipment or systems that reliably deliver liquid and solid cargoes, as well as fuel. Hepburn Engineering supplies the RAS system to navies in eight countries worldwide.
Under this contract, Hepburn Engineering is expected to supply the RAS system to the Republic of Korea Navy's second auxiliary support ship (AOE-II) through Hanwha Ocean. Last July, Hanwha Ocean was selected as the builder for the AOE-II project commissioned by the Defense Acquisition Program Administration. Hanwha Ocean aims to deliver the AOE-II to the Navy by December 2028.
There is also a possibility that Hanwha Ocean will invest in the Canadian defense industry following this contract. The Canadian government implements the Industrial Technology Benefits Program (ITB), which provides tax benefits when foreign corporations sign defense-related contracts with Canadian corporations. In return, a portion of the contract amount must be reinvested locally.
On the 23rd of last month, Hanwha Ocean's board of directors passed the proposal to establish a branch in Canada. It is reported that they are reviewing the branch's establishment to focus on the Canadian Patrol Submarine Project, which involves ordering 8 to 12 submarines weighing 3,000 tons. The scale of the project is estimated to reach up to 60 trillion won.
Although the bidding has not officially begun, Hanwha Ocean has already expressed its intention to participate. The Defense Acquisition Program Administration has stated that domestic defense companies will participate as 'one team' in Canada's submarine acquisition project. If Hanwha Ocean, known for its excellent submarine construction capabilities, is selected as the contractor, HD Hyundai Heavy Industries is likely to support the construction.