- Hanwha Ocean and Babcock Canada are advancing a Canadian Patrol Submarine Project (CPSP) solution centered on Canadian jobs, skills development, and in-country sustainment
- Babcock Canada will play a central role in localization, workforce development, and delivery of an all-encompassing, purpose built, and sovereign sustainment capability
- Hanwha is fully committed to a long-term workforce and industrial capability program for Canada through the CPSP.
January 20, 2026 – Hanwha Ocean, one of two shortlisted qualified bidders in the Canadian Patrol Submarine Project (CPSP), and Babcock Canada (Babcock), Canada’s leader in submarine support and Prime Contractor of the Royal Canadian Navy’s (RCN) current submarine sustainment contract, are pursuing a joint approach to the CPSP. The team’s proposed solution places long-term employment, skills transfer, and industrial participation in Canada at the core of its delivery.
On the sidelines of the United Kingdom – Republic of Korea Defence Logistics Committee in London, representatives from both companies met to explore and develop sovereign sustainment and long-term employment pathways in Canada. The team also discussed localization strategies, including the development of Canadian solutions to enable patriation of Babcock International Group’s Weapons Handling and Launch Discharge System, a critical component of Hanwha Ocean’s KSS-III submarine platform.
Under this partnership, Hanwha Ocean brings a proven, in-service KSS-III submarine platform together with extensive shipbuilding expertise. Babcock brings deep submarine sustainment understanding and experience, a highly specialized Canadian workforce and supply chain, and critical subsystems, including the Weapons Handling and Launch Discharge System and key torpedo tube components.
Working alongside Hanwha Ocean, Babcock will lead localization efforts in Canada.
“CPSP is not just about delivering a submarine platform. It is about building long-term industrial capability and skilled jobs in Canada,” said Charlie SC Eoh, President of Naval Ship Business at Hanwha Ocean. “Through our partnership, with Babcock at the center of localization, we are committed to supporting sovereign sustainment and lasting workforce development for Canada.”
This industry trilateral collaboration between South Korea, the United Kingdom, and Canada ensures that the CPSP generates sustained, high-quality employment for Canadian workers over decades, spanning maintenance, and repair and overhaul, supply-chain participation, engineering support, and skills development. The Hanwha–Babcock partnership embeds industrial capability and long-term employment across the full submarine lifecycle.
By combining Hanwha Ocean’s shipbuilding and platform expertise with Babcock’s sustainment capabilities, established local footprint, and critical subsystems, the partnership will deliver enduring economic and workforce benefits aligned with Canada’s Industrial and Technological Benefits (ITB) program objectives and long-term naval requirements.
“To successfully deliver and operate a fleet of this magnitude from coast to coast to coast, significant investment and commitment will be made, giving Canada a transformational opportunity with significant economic value,” said Tony March, CEO, Babcock Canada. “Our team is committed to employing Canadians across all lines of business, through our supply chain, ITB investments, and future infrastructure developments. Our Canadian specialists, alongside Hanwha Ocean, will deliver an all-encompassing, purpose-built, and sovereign Canadian sustainment solution that will meet our Nation’s defense and economic needs for generations to come.”
The CPSP is a flagship program aimed at acquiring 12 submarines to recapitalize the RCN’s fleet and strengthen Canada’s long-term maritime sovereignty across the Pacific, Atlantic, and Arctic. The CPSP is widely regarded as one of Canada’s most significant and complex defence procurement programs, strongly emphasizing industrial participation, sovereign sustainment, and long-term workforce development.
