South Korean Hawnha Ocean faces second consecutive submarine tender defeat in last 12 months. Reason was Canada's choice of alternative proposal from German ThyssenKrupp Marine Systems (TKMS).
Canadian Prime Minister Mark Carney announced such decision and German Defense Ministry confirmed. Now Canadian government and German shipbuilding consortium will need to enter negotiations regarding final contract terms.
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According to publicly available information, this involves agreement for 12 Type 212CD submarines valued at over $12 billion. With approximately half-century maintenance, project overall may cost over $70 billion.
Defense Express notes this is another failure for South Korean KSS-III Batch-II submarines from Hawnha Ocean. Only at end of November 2025, Swedish A26 from Saab overtook it in Polish tender under Orka project.
Thus currently South Korea failed to find export customers for these submarines. Despite same Canada being offered enormous industrial and trade cooperation, as well as 5 unit delivery by 2035, with first in 2032.
For comparison, Type 212CD indicated delivery of 4 submarines by end of 2036, for which Germany and Norway would each give up one own production slot. Also industrial and trade cooperation was similarly offered.
Canada previously noted both variants satisfy military needs, so choice depended on economic and political factors. Country currently attempts to promote ally cooperation more, therefore likely settled on NATO country proposal.
Currently Canadian fleet uses 4 Victoria-class submarines purchased used from British, where they belonged to Upholder class. These submarines are planned for retirement in 2030s, requiring replacement. However 12 Type 212CDs after contract fulfillment can potentially not only replace but expand submarine fleet capabilities.
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