Hanwha Ocean has formalized a partnership with Babcock Canada as part of the Canadian Patrol Submarine Project (CPSP), designating Babcock as the exclusive in-service support partner for the initiative. This agreement builds on previous collaborations, including a memorandum of understanding established in 2021 and a technical cooperation agreement from 2022.
The partnership follows Canada’s announcement in August, which shortlisted Hanwha Ocean as one of the two finalists for the project, alongside Germany’s Thyssenkrupp Marine Systems. According to Babcock Canada, selecting a local contractor for in-service support is crucial for maintaining the sustainability and operational readiness of the submarine fleet over the long term.
Babcock Canada, a subsidiary of the UK-based Babcock International Group—which has extensive experience supporting the Royal Navy’s submarine fleet—views this agreement as a significant enhancement of its relationship with Hanwha Ocean. CEO Tony March emphasized that the partnership will leverage the combined expertise of both organizations in managing the CPSP.
The CPSP itself is poised to become one of the largest conventional submarine procurements in modern history. It aims to provide up to 12 submarines to the Royal Canadian Navy, replacing the four aging Victoria-class submarines that have been operational since the early 1990s. The new submarines will be designed to operate in the challenging Arctic waters, ensuring extended range and endurance while prioritizing stealth and lethal capabilities.
The project is partly driven by geopolitical dynamics, including the need to address the expanding submarine fleets of China and Russia, particularly as climate change opens new Arctic shipping lanes for resource extraction.
With an estimated budget of 60 billion Canadian dollars (approximately 43 billion US dollars), the CPSP is slated to deliver its first submarine by 2035, with the complete fleet expected to be operational by 2043. Hanwha Ocean has committed to a delivery timeline that could see the first submarine in service within six years, followed by additional units at a rate of one per year. If awarded the contract in 2026, Hanwha Ocean predicts that four submarines could be operational by 2035, beginning with the first by 2032.
Steve Jeong, head of Naval Ship Global Business at Hanwha Ocean, highlighted that the company’s proven capacity in submarine construction combined with Babcock’s established local supply chain and comprehensive global sustainment experience will provide the Royal Canadian Navy with a dependable and low-risk solution, ensuring optimal availability of the new submarine fleet.
