Germany's ThyssenKrupp Marine Systems (TKMS) has been virtually selected as the preferred bidder for Canada's next-generation submarine acquisition project, effectively dimming Hanwha Ocean's hopes of securing a massive order.

Local media outlet The Globe and Mail reported on the 6th (local time) that the Canadian government has chosen TKMS as the preferred bidder for the project to procure 12 next-generation submarines.

The project is a mega-initiative to introduce up to 12 conventional submarines to replace Canada's aging Victoria-class submarines. It encompasses not only submarine construction but also decades of future maintenance, repair, and overhaul (MRO), with the project's total value estimated at approximately 60 trillion won.

Hanwha Ocean and Germany's TKMS competed in the final round. Hanwha Ocean poured its full efforts into the bidding contest, highlighting the technological capabilities of its KSS-III (Jangbogo-III)-based submarine, along with prompt delivery and robust maintenance capacities. Expectations were particularly high because a successful entry into Canada would have established a strategic foothold for expanding into the broader North American defense market.

However, Canada's official announcement and the contract finalization process still remain. Even after the selection of the preferred bidder, negotiations on detailed terms are expected to continue, and additional procedures are anticipated before a final contract is signed.