As Canada prepares to award a lucrative contract to build up to 12 submarines, South Korea's Hanwha Corp. is enhancing its bid by offering assistance in space exploration. Hanwha Aerospace Co. is set to sign a memorandum of understanding with Canadian spaceport operator Maritime Launch Services Inc., according to Glenn Copeland, CEO of Hanwha Defence Canada.
Space Investment as a Sweetener
Canada currently lacks an active launchpad or launch-vehicle operator, forcing its satellite companies to rely on foreign entities like SpaceX. The government of Prime Minister Mark Carney is working to change that and recently leased a site in Nova Scotia for a commercial spaceport. Hanwha plans to support this effort with launch technology.
“We’re going to invest in bringing a rocket capability to accelerate Canada’s Indigenous launch,” Copeland said. The orbital path available to a Hanwha rocket launched from the Nova Scotia base would fly over Korea, he added.
Competition for the Submarine Contract
Hanwha is competing with Germany's Thyssenkrupp Marine Systems GmbH for one of Canada's largest military procurements. The dozen vessels would cost around $25 billion, Copeland said, with support and maintenance potentially bringing the total to $100 billion to $120 billion in today's dollars.
The space pledge adds another element to Hanwha's pitch. It already promised to build military vehicles in Canada and buy steel from Ontario-based Algoma Steel Group Inc., helping offset lost revenue from core industries hit by U.S. President Donald Trump's tariffs.
No Strings Attached
However, the launch investment will happen regardless of whether Hanwha wins the submarine project, Copeland said. Carney stated Wednesday that the government is on track to make the decision by the end of June.
“I’ve heard that the actual scoring and evaluation is completely done and it’s working its way up to cabinet,” Copeland said. “Everything’s pointing towards the full 12” being ordered, he added.
Advantages Over Competitors
Hanwha claims its submarines would cost less than those from Thyssenkrupp Marine, which has also offered auxiliary benefits through partnerships with companies like Quebec's CAE Inc. Copeland argued Hanwha would deliver the subs fastest, citing recent remarks from Rear-Admiral David Patchell, commander of Canada’s Maritime Forces Pacific, who said, “I need them yesterday.”
Copeland was speaking in Victoria, B.C., near Canada's west coast naval base, which was visited by a Hanwha KSS-III submarine that traveled 14,000 kilometers from Korea for joint exercises. Copeland said Hanwha hasn't received any indication that Carney's government might split the contract between the two bidders.
