The hard-fought race to construct Canada’s subsequent submarine fleet – Nationwide

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From a large advert blitz that includes Canadian broadcast icon Peter Mansbridge to a cupboard minister calling on shipbuilders to cough up a automobile plant, the transient race to switch Canada’s growing old submarine fleet turned heads in additional methods than one.

The unusually quick competitors to construct the navy’s subsequent submarine fleet appeared to deal with every part however the boats themselves — although the 2 vessels within the operating are, in some methods, very totally different.

At no level in the course of the two-year-long procurement competitors did the federal authorities ever actually discuss in regards to the boats’ capabilities. The navy made it clear very early on that both mannequin would do exactly high quality.

With the July NATO summit proper across the nook, the Liberal authorities is anticipated to announce its chosen provider for as much as 12 submarines within the coming days.

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It’s a large order, price tens of billions of {dollars} — sufficient to be a focus for South Korean producer Hanwha as Seoul aspires to make itself the fourth-largest defence exporter on the planet.

Hanwha launched a large advert marketing campaign, plastering airports in Canada with commercials and hitting broadcast TV and streaming platforms to showcase its KSS-III.

Even its competitors — a European market chief accountable for supplying most of NATO’s typical submarines — took be aware of the adverts that appeared as distant from the coasts as Winnipeg and Calgary.

“That is nuts, truthfully,” mentioned Oliver Burkhard, CEO of rival bidder TKMS, in an interview on the CANSEC army commerce present in Could. “We’re not used to this.”


A scale mannequin of a TKMS (ThyssenKrupp Marine Methods) HDW Class 212CD submarine is proven on the Canadian Affiliation of Defence and Safety Industries annual defence trade commerce present CANSEC, in Ottawa, on Wednesday, Could 27, 2026.

THE CANADIAN PRESS/Justin Tang

His typical rivals — French, Spanish, Italian, British and Swedish submarine makers — “don’t do that,” he mentioned. Submarines aren’t presupposed to be so seen, in any case. These competitions often deal with what the subs can truly do, and the gross sales pitches are aimed squarely at governments — not everybody.

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“That is uncommon. Allow them to strive it,” he added. “If they’ve success, then perhaps say this was a giant technique and now we have gained this due to our promoting. If they don’t win it, then they’re the extra well-liked one who has misplaced … the most well-liked loser.”

However Hanwha is just not a typical competitor. Whereas it has by no means exported subs earlier than, it boasts of its large shipyard facility and has provided Ottawa a breakneck supply schedule.

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Hanwha says it’s making a long-term play with the adverts. It’s a family title in Korea however not but identified in nations like Canada as a prime defence provider, mentioned its Canadian CEO Glenn Copeland.

“It’s about model recognition and it’s about understanding what our capabilities are, and as individuals have understood, it’s a fairly highly effective firm,” Copeland mentioned in an interview days after the massive defence commerce present.

He mentioned the adverts additionally “definitely obtained the eye” of a number of ranges of presidency and resulted in lots of knocks on their door.

Hanwha is perhaps new to exporting subs however its boats are already being utilized by the Korean navy. One sailed to Esquimalt, B.C. in Could.

The TKMS mannequin 212CD sub is the agency’s newest design and has but to begin rolling off meeting traces. It provides cutting-edge engineering from a long-established producer.

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Whereas all subs are quiet, the 212CD has a diamond-shaped hull designed to make it much less detectable by sonar.

The TKMS marketing campaign for the sub contract has centered on the truth that Germany and Norway, NATO alliance nations, are shopping for the identical mannequin. Interoperability — doing issues like coaching and repairs collectively — is a said purpose of the alliance.

Whereas the main points of the bids stay labeled, the general public facet of the Korean marketing campaign has wowed some observers.

“Korea has gone all-out to win this,” mentioned Paul Mitchell, a professor of defence research on the Canadian Forces Faculty. “In some methods, I believe it’s theirs to lose.”


Royal Canadian Navy host the Republic of Korea Navy KSS-III, often called Dosan Ahn Chang-ho, throughout a welcome ceremony at CFB Esquimalt in Esquimalt, B.C., on Monday, Could 25, 2026.

THE CANADIAN PRESS/Chad Hipolito

Early on, Hanwha pitched an aggressive supply timeline — 4 boats within the water by 2035, then one boat per yr. The Germans then revised their very own schedule to hurry up deliveries late within the recreation.

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Hanwha’s KSS-III is a much bigger, extra spacious boat than the 212CD, one thing that may have an effect on modifications and vary.

Designed to maintain North Korea in verify, it additionally comes with an added functionality to vertically launch ballistic or cruise missiles from the ocean to hit land targets — one thing the German boats don’t have.


“The strengths that the German boat has over the Korean boat are more durable to quantify — interoperability, the format of the boat itself, and I’d argue the language issue … You’re coping with navies which have extraordinarily good English-language capabilities,” Mitchell mentioned. “And language goes to be an actual vital challenge.”

Most specialists say the competition seems to be a lifeless warmth or is marginally leaning to 1 bidder or the opposite. Nobody actually is aware of, since Ottawa is maintaining it tightly beneath wraps.

The federal authorities’s behaviour over the past two years has additionally been considerably uncommon. It modified the conventional guidelines and processes to hurry up what is probably going the largest army buy in Canada’s historical past, advancing it by a number of years.

Ottawa made a shock transfer to increase the bid deadline this spring. Business Minister Mélanie Joly publicly declared she hoped the bidders would come with of their packages a suggestion to open a brand new automobile plant in Canada to assist the struggling auto sector.

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That led to a further supply from Hanwha — a potential three way partnership to construct army automobiles.

Those that watch army purchases intently weren’t solely shocked.

“I’d say that’s par for the course for Canada, truthfully,” Mitchell mentioned.


Click to play video: 'Carney tours South Korean shipyard competing to build Canada’s next submarine fleet'


Carney excursions South Korean shipyard competing to construct Canada’s subsequent submarine fleet


When Canada was about to order its present Victoria subs from the U.Okay. within the Nineteen Nineties, he mentioned, Ottawa requested for an additional $50 million low cost on the final minute.

With procurement tasks this huge, financial advantages usually come to the fore.

“It is a fairly uncommon functionality acquisition, partly as a result of it’s very vital in worth,” mentioned Darren Hawco, a retired naval officer now working with Deloitte.

“Whereas many procurements of army capabilities are modest in worth, comparatively talking … this procurement is totally different due to its measurement, due to its (geopolitical) strategic alignment outcomes, and due to the financial potential to Canada general.”

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Retired vice-admiral Mark Norman mentioned he’s been “actually impressed” by each bidders.

“The Koreans have been extraordinarily aggressive they usually have led the best way within the public area. They’ve been on the market speaking, not simply making offers but additionally speaking the character of these offers,” he mentioned.

“The Germans equally have been working exhausting however extra behind the scenes.”

He mentioned he’s not satisfied both firm has a transparent edge since Ottawa’s resolution will come right down to the way it assesses the worth of the financial advantages and strategic partnerships on supply. Publicly evaluating capabilities solely will get a sub maker to date.

“The distinction between a Toyota Camry and a Honda Accord is basically purchaser choice,” Norman mentioned.

“They each principally do the identical factor. They each are the identical configuration, principally the identical product. They’re simply packaged otherwise they usually ship their functionality in barely totally different and nuanced methods.”

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