Hanwha Ocean Loses Canada's $39B Submarine Deal to Germany's TKMS

Canada selected Germany's Thyssenkrupp Marine Systems (TKMS) as preferred supplier for the Canadian Patrol Submarine Project on July 7, ending Hanwha Ocean's bid to build up to 12 diesel-electric submarines under the ~C$60 trillion won ($39B) program. Prime Minister Mark Carney announced the decision ahead of the NATO summit in Ankara. TKMS prevailed by emphasizing its status as a NATO ally already supplying European navies and offering a larger economic package. Hanwha Ocean — which had signed partnerships with 80+ Canadian firms and pledged C$70B in economic benefits and a first-boat delivery by 2032 — was designated the reserve supplier, retained as an alternative if TKMS falters. Hanwha Ocean shares fell more than 23% on the news. The loss is a setback for Korea's NATO-market naval export ambitions, though analysts note the local partnership network and reserve status preserve a future path.