South Korean shipbuilder Hanwha Ocean has announced it is ending its partnerships with Mohawk College and Ontario Shipyards. This decision comes directly after the Canadian government selected Germany's ThyssenKrupp Marine Systems (TKMS) as the preferred bidder for the Canadian Patrol Submarine Project, a deal valued in the tens of billions of dollars.
Hanwha Ocean had previously entered into a Memorandum of Understanding with Ontario Shipyards and a Letter of Intent with Mohawk College to establish a shipbuilding training hub. This collaboration was contingent on Hanwha Ocean securing the submarine contract. Hanwha Canada spokesperson Keelan Green stated, "Hanwha's agreement with Ontario Shipyards and Mohawk College was dependent on Hanwha being selected for the Canadian Patrol Submarine Project. All of it stops."
Despite Hanwha's withdrawal, Ontario Shipyards CEO Sean Padulo indicated that his company intends to continue its partnership with Mohawk College and proceed with building a planned training vessel. He emphasized that the initial agreement was between the business and the college before Hanwha's involvement.
The Canadian Patrol Submarine Project aims to replace the Royal Canadian Navy's aging Victoria-class submarines, with the contract representing the largest naval procurement in Canadian history. Prime Minister Mark Carney announced the selection of TKMS, noting that while the decision was difficult, Canada retains the right to negotiate with Hanwha Ocean if talks with TKMS fail.
