HD Hyundai Heavy Industries Intensifies Canadian Partnership for Next-Generation Submarine Bid
HD Hyundai Heavy Industries is significantly stepping up its strategic efforts to win Canada’s highly anticipated next-generation submarine program. The South Korean shipbuilding giant is actively fortifying its relationships with leading Canadian shipbuilders and expanding industrial cooperation ahead of the crucial final bidder selection phase.
Strategic Engagements with Davie Shipbuilding
The South Korean shipbuilder announced on Thursday that its senior executives held a productive meeting with Canada’s Davie Shipbuilding in Ottawa on Tuesday. Discussions focused on enhancing cooperation across various shipbuilding and naval programs, underscoring a shared vision for industry advancement.
During the meeting, which saw the participation of Park Yong-yeol, head of HD HHI’s naval ship business unit, and James Davies, CEO of Davie Shipbuilding, HD Hyundai highlighted its cutting-edge shipbuilding technology. Both parties also explored comprehensive strategies to support the ongoing development and growth of Canada’s domestic shipbuilding industry.
Davie Shipbuilding, based in Quebec, stands as Canada’s largest shipyard, boasting extensive capabilities in constructing a diverse range of vessels, including advanced icebreakers, complex offshore plants, and critical naval support ships. The company’s ownership of Finland’s Helsinki Shipyard presents a significant opportunity for HD Hyundai to broaden its collaborative efforts beyond Canada, particularly into lucrative Arctic-related markets.
Competing for Canada’s Patrol Submarine Project
These crucial meetings are integral to HD HHI’s overarching strategy to help South Korea secure Canada’s multibillion-dollar submarine procurement program. A formidable Korean consortium, comprising Hanwha Ocean and HD HHI, has successfully reached the final shortlist, alongside Germany’s Thyssenkrupp Marine Systems.
The highly competitive Canadian Patrol Submarine Project (CPSP) aims for the acquisition of up to 12 new diesel-powered submarines, designed to comprehensively replace the nation’s aging fleet. A definitive decision on the preferred bidder is keenly anticipated in June.
Further underscoring the strong bilateral naval ties, Joo Won-ho, president and head of the naval & medium-size shipbuilding business unit at HD HHI, attended a reception last week hosted by the South Korean ambassador to Canada. This event followed the significant arrival of the ROKS Dosan Ahn Chang-ho submarine at a Canadian port for joint drills with the Royal Canadian Navy.
“We are diligently working in close collaboration with leading Canadian shipbuilders, including Davie Shipbuilding and Irving Shipbuilding, to expand robust cooperation across both commercial shipbuilding and vital naval sectors,” stated Joo, emphasizing the depth of their commitment.
Forging Stronger Ties with Irving Shipbuilding
Earlier this month, Dirk Lesko, President of Irving Shipbuilding, along with other senior executives, conducted a detailed visit to HD Hyundai Heavy Industries’ advanced shipyard in Ulsan. Their tour included an extensive inspection of the naval production facilities and fruitful discussions on potential areas for future cooperation.
Irving Shipbuilding, strategically located in Nova Scotia, is recognized as one of Canada’s three major shipyards and plays a pivotal role as a key builder for the Royal Canadian Navy, reinforcing its importance to Canada’s naval capabilities.
Comprehensive Industrial Partnership for Canada
As a core component of its broader bid package, HD Hyundai Group previously presented a comprehensive, multibillion-dollar industrial partnership plan specifically tailored for Canada. This ambitious proposal includes significant technology transfers in shipbuilding, expert consulting services for submarine maintenance and operations, and substantial support for bolstering local naval capabilities.
Demonstrating a wider economic commitment, HD Hyundai Oilbank, the group’s refining arm, has also pledged to import Canadian crude oil worth trillions of won, highlighting the extensive and mutually beneficial nature of their proposed collaboration.
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