Two major South Korean shipbuilders, HD Hyundai Heavy Industries and Hanwha Ocean, are competing for submarine orders from Poland and Canada. With the global submarine market looking promising, the two shipbuilders are working on upgrading technology and stepping up marketing efforts to take a seat in the multi-billion-dollar international submarine market.
HD Hyundai Heavy Industries and Hanwha Ocean have announced their participation in Poland’s Orca submarine project and have begun preliminary work to win the order, according to Korean media reports.
The Polish Orca project plans to build three new submarines, with a total cost or up to 5.8 billion U.S. dollars (about 41 billion yuan), and a total of 11 shipyards around the world have submitted letters of intent to participate. The Orca project is expected to be tendered by the end of this year, and South Korea’s two largest shipbuilders will compete for the order with defense enterprises from Germany, France, Spain and Sweden.
It is understood that although Korean shipbuilders are experienced in exporting surface vessels, they have relatively limited experience in submarine exports, with only Daewoo Shipbuilding & Marine Engineering (now Hanwha Ocean) exporting six submarines to Indonesia. Submarines have a complex structure involving numerous pipes and cables, which makes their design and construction difficult.
The enthusiasm for the submarine business among the two shipbuilders stems from the favorable outlook for this market.The demand for submarines is growing as the defense market is in turmoil with the impact of the Russia-Ukraine war and the prolonged conflict in the Middle East.
The global submarine market is estimated to be valued at US$22.2 billion in 2024 and is expected to grow further to US$27.6 billion by 2034, according to an Aerospace & Defense Market report.
HD Hyundai Heavy Industries and Hanwha Ocean are said to be making preliminary preparations in order to seize the opportunity of global submarine orders.HD Hyundai Heavy Industries held a promotion day in Warsaw, Poland, to showcase its self-developed 2,300-ton export submarine and explore the possibility of cooperation with Poland.
Based on its strong shipbuilding capabilities, HD Hyundai Heavy Industries has proposed customized submarine solutions to meet the needs of the Polish Navy and the local shipbuilding industry, and hopes to gain a competitive advantage in the Orca project, said an executive of the company.
Not to be outdone, Hanwha Ocean attended the International Defense Industry Exhibition in Poland last month, showcasing the 3,000-ton submarine Jangbogo-III and signing a memorandum of understanding (MoU) on submarine business cooperation with Polish defense group WB Group. In addition to the Polish project, HD Hyundai Heavy Industries and Hanwha Ocean will compete for submarine projects in Canada and the Philippines.
Canada is launching a high-profile submarine program to replace four existing aging submarines with up to 12 new 3,000-ton diesel submarines, including related appurtenances and equipment, with a total contract value that could exceed US$50 billion. In addition to South Korean shipbuilders, Japanese and European shipbuilders will compete for the program, with candidates including Japan’s Kawasaki Heavy Industries, Sweden’s Saab, and Germany’s ThyssenKrupp Marine Systems.
In addition, the Philippines is also planning to order two mid-sized submarines, which are expected to be worth about US$1.4 billion.