In a strategic move that deepens Canada’s defence industrial base and expands trans-Pacific collaboration, Hanwha Ocean of South Korea has signed a Memorandum of Understanding (MOU) with PCL Construction, Canada’s largest general contractor, for cooperation on infrastructure development in support of the Canadian Patrol Submarine Project (CPSP).

This partnership represents a meeting of two industrial powerhouses: Hanwha Ocean, one of the world’s foremost submarine designers and builders, and PCL, a Canadian construction leader with a proven record delivering complex defence and maritime projects across the country. Together, they aim to help Canada realize a generational renewal of its undersea warfare capability.

“PCL Construction is proud to join Hanwha Ocean’s Team to collaborate on the planning and construction of infrastructure for the Canadian Patrol Submarine Project. Our company has significant experience partnering with the Government of Canada, the Department of National Defence and the Canadian Armed Forces on projects across Canada. We believe PCL’s expertise and collaborative approach will be a great asset to Hanwha Ocean’s proposal for this critical project,” stated Mike Wieninger, Chief Operating Officer, Canadian Operations, PCL Construction.

The KSS-III Advantage

Hanwha Ocean’s KSS-III submarine was officially selected by the Government of Canada in August 2025 as a qualified supplier for the CPSP. The KSS-III is not a concept—it’s an operational, in-service, active production submarine platform that meets and exceeds all of Canada’s High-Level Mandatory Requirements (HLMRs).

Designed for endurance, stealth, and multi-mission versatility, the KSS-III offers superior underwater surveillance, Arctic-capable deployability, and extended operational range, enabling the Royal Canadian Navy to detect, track, deter, and—if necessary—defeat threats across all three of Canada’s oceans.

“We see significant opportunities for collaboration between Hanwha Ocean and PCL Construction on the planning and construction of infrastructure needed for the Canadian Patrol Submarine Project. As Canada’s largest construction company with significant experience in delivering defence and maritime projects across Canada, the addition of PCL really enhances our team,” expressed VAdm (Ret) Steve Jeong, Senior Executive Vice President, Head of Naval Ship Global Business, Hanwha Ocean.            

Delivering Capability at Speed

Hanwha Ocean stands apart for its rapid and scalable delivery schedule. If contracted in 2026, the company can deliver four KSS-III submarines before 2035, enabling the early retirement of the Victoria-class fleet and generating an estimated $1 billion in maintenance and support savings.

Following that initial tranche, eight additional submarines would be delivered at a rate of one per year, completing a 12-boat fleet by 2043—a timeline unmatched by any other contender.

A Broader Strategic Partnership

Beyond shipbuilding, Hanwha Ocean’s investment in Canada represents a long-term commitment to partnership in defence, space, sustainable energy, and critical minerals. This growing relationship between Canada and South Korea strengthens economic ties, creates high-value jobs, and enhances supply-chain cooperation in line with Canada’s Indo-Pacific Strategy.

Since 2023, Hanwha Ocean has signed more than a dozen Teaming Agreements and MOUs with leading Canadian firms—including Babcock Canada, BlackBerry, CAE, Curtiss-Wright Indal Technologies, Des Nedhe Group, Gastops, J Squared Technologies, L3Harris Canada, and ModestTree—as part of a deliberate strategy to build a sovereign and sustainable submarine enterprise in Canada.

Hanwha Ocean has also moved beyond intent to action, already entering into contracts with ModestTree and Hepburn Engineering—early examples of its commitment to real Canadian content and enduring industrial benefits.

Forging the Future, Together

The new partnership with PCL Construction underscores Hanwha Ocean’s vision: to build not only submarines, but lasting industrial bridges between Canada and South Korea.

As the CPSP progresses, this alliance brings together global submarine expertise and Canadian infrastructure excellence to deliver one of the most ambitious maritime capability programs in Canadian history—one that will secure Canada’s place as a capable, sovereign, and resilient Arctic and Indo-Pacific power.