South Korea’s Hanwha and Germany’s Thyssen: Selected as Qualified Candidates for Canada’s New Submarines
– South Korea’s “Public-Private Team” to Finalize CPSP Bid
– Germany’s TKMS to Compete Alone with South Korea for CPSP Bid
Here’s a summary from an article published in the JoongAng Ilbo.
South Korea’s Hanwha vs. Germany’s Thyssen:
South Korea has advanced to the final round of the Canadian Next Submarine Program.
The total cost could reach up to 60 trillion won (approximately 6.35 trillion yen).
Canadian Prime Minister Visits Germany:
However, on the same day as the announcement, the Canadian Prime Minister visited a rival German shipyard.
South Korea is in a “competition where it must catch up with Germany.”
Canadian Government Announcement: August 26th
Canada has selected South Korea’s Hanwha Ocean and Germany’s ThyssenKrupp Marine Systems as candidates for the Next Submarine Program (CPSP).
South Korea is participating in the CPSP as a “one team” consisting of Hanwha and HD Hyundai Heavy Industries.
Canada’s CPSP Plan:
1. Canada will acquire 8-12 conventionally powered submarines to defend the Arctic and counter Russia and China.
2. The Canadian Department of National Defense estimates the total project budget to be up to 60 billion Canadian dollars (approximately 60 trillion won).
This budget includes maintenance, repair, and overhaul (MRO) costs for 30 years after deployment.
Participating countries in this project:
1. France’s Naval Group,
2. Spain’s Navantia,
3. Leading European defense companies such as Sweden’s Saab also took part.
Finally, the Hanwha Ocean-HD Hyundai Heavy Industries consortium and tkMS passed the “preliminary round.”
South Korea’s One Team Proposal:
The 3,000-ton Jang Bogo-III Batch-II was proposed to Canada.
It is equipped with an air-dependent propulsion system (AIP) and lithium-ion batteries.
It can remain submerged for more than three weeks
Germany’s TKMS Proposal:
Meanwhile, TKMS proposed the 2,500-ton 212CD.
The 212CD is designed with a stealth shape for low detection by sonar (SONAR) radar.
South Korean Shipbuilding Industry: Views of an Insider:
1. South Korean submarines have the advantage in terms of performance, but German submarines also meet the standards.
2. Ultimately, “variables other than performance will determine the outcome,” the source said.
If South Korea wins the CPSP order, the South Korean defense industry will have a diverse portfolio of land, sea, and air defense capabilities.
This is also an entry point for the South Korean government’s goal of becoming one of the “four major defense industry powers.” Missing this opportunity would have major repercussions.
Variables other than performance:
There are three major “variables other than performance” mentioned by this official.
1. First, operational support (ISS) is important. Canada must be able to provide operational support for submarines for 30 years.
2. Next, industrial technology benefits (ITB) are important. “Weapons suppliers should create economic value for Canada.”
The shipbuilding industry’s assessment is that “South Korea will surpass Germany” in ISS and ITB.
In the end, it’s likely that the decision will be decided by economic and security cooperation.