[Market Focus] Hanwha Ocean and HD Hyundai Heavy Industries Rally on Expectations of Canadian Submarine Contract

Hanwha Ocean and HD Hyundai Heavy Industries are experiencing an upward trend amid expectations of winning a Canadian submarine contract.

As of 9:27 a.m. on August 27, Hanwha Ocean was trading at 111,000 won, up 3,200 won (2.97%) from the previous day on the Korea Exchange. HD Hyundai Heavy Industries was trading at 490,000 won, up 4.70%.

According to the defense industry, the consortium of Hanwha Ocean and HD Hyundai Heavy Industries, working as a "one team" with a German company, has been shortlisted as an eligible candidate for the Canadian submarine contract, which is estimated to be worth up to 60 trillion won.

This project aims to acquire up to 12 diesel submarines to replace the four Victoria-class submarines scheduled for decommissioning in the mid-2030s. The contract cost for acquiring the submarines alone is estimated at up to 20 trillion won, and including operating and maintenance costs over the next 30 years, the total contract size could reach up to 60 trillion won. If successful, this would mark the largest single defense export contract in history.

Korean defense companies, under the mediation of the Defense Acquisition Program Administration, have entered this bidding process as a "one team," with Hanwha Ocean leading the project and HD Hyundai Heavy Industries providing support.

This content was produced with the assistance of AI translation services.