HD Hyundai Heavy Industries, which is teaming up with Hanwha Ocean for Canada’s submarine procurement, is stepping up efforts with a multibillion-dollar package of shipbuilding and energy cooperation to bolster South Korea’s bid.
HD Hyundai's proposal is intended to meet the requirements of Canada's Industrial and Technological Benefits Policy, which seeks to drive growth in Canadian industries by mandating local investment tied to major defense procurement contracts.
A consortium of HD Hyundai and Hanwha Ocean is competing against Germany’s Thyssenkrupp Marine Systems in the final stage of the bidding process for the Canadian Patrol Submarine Project -- a planned purchase of up to 12 new diesel-powered submarines to replace the country's aging fleet. The deal is projected to be worth up to 60 trillion won ($42 billion).
HD Hyundai said Wednesday it presented a comprehensive package worth trillions of won to support Korea’s bid. The exact amount of the investment would be finalized through negotiations, according to an HD Hyundai official.
In the shipbuilding sector, the company plans to provide consulting services to help Canada establish stable submarine operations and maintenance capabilities. It would transfer shipbuilding and submarine-related technologies to Canadian shipyards, along with vessel construction know-how, to help strengthen the competitiveness of Canada’s domestic shipbuilding industry.
Beyond shipbuilding, HD Hyundai plans to collaborate with top Canadian universities and research institutions to pursue joint research and development in shipbuilding and manufacturing and expand further into areas including artificial intelligence and biotechnology, the company said.
In the energy sector, HD Hyundai Oilbank, the group’s refining arm, said it will work with Canadian crude producers to import trillions of won worth of oil over the duration of the submarine program.
“Canada’s submarine program goes beyond ship exports and requires offset trade across all industrial sectors that can create synergy between the two countries,” said an HD Hyundai official. “We have prepared a proposal that can create a win-win outcome for both countries in HD Hyundai’s shipbuilding and energy sectors.”
sahn@heraldcorp.com
