Earlier this fall, Hanwha Ocean, a recognized global leader in submarine design and construction, formalized a Teaming Agreement with Babcock Canada (Babcock), Canada’s proven leader in submarine support and the Prime Contractor of the Royal Canadian Navy’s Victoria Class In-Service Support Contract (VISSC). This agreement establishes Babcock as Hanwha’s exclusive In-Service Support partner for the Canadian Patrol Submarine Project (CPSP), combining the strengths of a leading submarine builder with Canada’s only established submarine support enterprise.
The partnership builds on a foundation of collaboration. Hanwha Ocean and Babcock first joined forces in 2021 through a Memorandum of Understanding on future systems integration, and in 2023 signed a Technical Cooperation Agreement focused on the CPSP. The new Teaming Agreement solidifies their relationship and directs both companies’ capabilities toward one clear purpose: delivering a comprehensive and sovereign submarine solution for Canada, from build through their complete service life.
Hanwha Ocean and Babcock have been active participants in Canada’s CPSP discussions. Both organizations have been advocating for the shipbuilder and the in-service support provider to work hand-in-hand throughout the entire lifecycle of the vessels to ensure performance, availability, and value for Canada. This partnership cannot wait until the first boat is delivered. Investments in submarine sustainment must begin while the first submarine is being built to ensure that when the Royal Canadian Navy receives its new fleet, the sustainment enterprise is already in place. This will ensure the submarines can be operated and maintained effectively from the moment they arrive to deliver the operational capability Canada needs.
Together, Hanwha Ocean and Babcock will deliver an all-encompassing, purpose-built, and sovereign Canadian sustainment solution – one that will meet Canada’s defence and economic needs for generations to come.
Strengthening International Relationships
Hanwha Ocean’s KSS-III Batch II is the same Class that forms the backbone of the Republic of Korea Navy’s (ROKN) submarine force and is already proven in real-world operations. Indigenously designed and constructed through decades of spiral development, the KSS-III Batch II represents South Korea’s most advanced conventional submarine. Equipped with lithium-ion batteries and an air-independent propulsion system, it offers unmatched submerged endurance among conventional submarines in service today. The platform also delivers a full spectrum of capabilities, including: Anti-Submarine Warfare, Anti-Surface Warfare, Strike, Intelligence, Surveillance and Reconnaissance, and supporting Special Operations.
With Hanwha Ocean, Canada would join the ROKN in operating the KSS-III and have the support of a parent navy who are committed to the design, having ordered six submarines themselves and vastly strengthen its Asia-Pacific ties. Canada would also benefit from a proven and existing platform that is backed by an established Korean supply chain with validated operational and maintenance data. This global reach-back also supports the Canadian in-service support solution and the Royal Canadian Navy, enabling opportunities for system improvements, global training support, and capability insertions throughout the vessels’ operational lives. Access to the shipbuilder’s platform knowledge eliminates many of the challenges encountered with the Victoria Class submarines, and helps maximize Canadian control and participation.
Regional and Economic Benefit
The selection of Hanwha Ocean to deliver Canada’s next-generation submarine fleet, paired with Babcock as the in-service support partner, offers Canada a capable platform and a proven pathway to maximize long-term economic impact. Together, the Team will ensure that Canada’s investment in new submarines delivers enduring benefits to Canadians through jobs, infrastructure, skills development, and supply chain growth in the marine sector.
Babcock’s record on the VISSC demonstrates what this partnership can achieve. Over the past 17 years, Babcock has generated more than $3.2 billion in GDP impact, sustaining nearly 2,500 Canadian jobs annually, more than half of which are in STEM fields. Babcock has also led the development of a network of over 450 suppliers while building Canada’s only submarine sustainment capability, with Canadian small and medium-sized businesses contributing approximately $235 million in GDP impact.
With the CPSP, the opportunity is even greater. Hanwha has already signalled its commitment to deep Canadian industrial participation, partnering with Canadian firms across training, simulation, and advanced technologies. Coupled with Babcock’s existing and growing Canadian supply chain and ability to scale a submarine-qualified workforce, this ensures that Canadian companies are embedded from the start – not as subcontractors, but as integral partners in both build and sustainment.
Significant investment will be required to support the new fleet, including modernized infrastructure, workforce expansion, and advanced training. The Team of Babcock and Hanwha Ocean is actively investigating how to bring the proven ROKN submarine sustainment infrastructure solutions to Canada, exploring potential submarine maintenance sites and planning investments on both coasts and across the country. By making these investments while steel is being cut, Canada secures not only the timely delivery of the fleet but also predictability for training and a seamless transition from the Victoria Class to the future submarines.
Just as important, this partnership ensures continuity of Canada’s submarine sustainment enterprise. Through Babcock’s hard-earned expertise, trusted supplier relationships, and highly-skilled workforce, Canada will be able to further build on an already established foundation, eliminating the risks associated from starting over with an untested in-service support provider. With Hanwha’s platform and Babcock’s proven sustainment leadership, Canada will strengthen its defence industrial base, create thousands of high-value jobs, and ensure sovereign control of its submarine capability for generations to come.
Meeting the Needs of the Royal Canadian Navy
As signalled by the Government of Canada and the Royal Canadian Navy, the first submarine of the new fleet is expected to be in the water by 2035 to prevent a capability gap as the Victoria Class retires. Hanwha Ocean is the only shipbuilder that can commit to this timeline at the scale needed by Canada. With a contract award in 2026, Hanwha Ocean has committed to deliver not one, but four new submarines by 2035, with the first arriving in 2032, followed by additional vessels at a pace of one per year.
This unmatched delivery schedule combined with Babcock’s extensive Canadian sustainment expertise and invaluable insights from leading the VISSC, gives Canada the fastest and most reliable path to a new and greatly enhanced submarine capability.
Through their teaming agreement, Hanwha Ocean and Babcock have committed to start this partnership on day one. By investing in sustainment while the first submarine is being built, Canada will be prepared to operate and maintain its new fleet seamlessly from the moment it arrives. This collaboration ensures not just delivery of advanced submarines, but also the retention and growth of a sovereign Canadian sustainment expertise.
Together, Hanwha Ocean and Babcock will deliver an all-encompassing, purpose-built, and sovereign Canadian sustainment solution — one that secures operational availability for the Royal Canadian Navy and delivers defence, economic, and resiliency benefits to Canadians for generations to come.
