Hanwha Ocean and PCL Construction Sign Teaming Agreement
Press Release + Noah Note
Companies strengthen their strategic partnership, combining proven technology with strong domestic execution capabilities, to delivery long-term infrastructure in support of Canadian Patrol Submarine Project
April 7, 2026, Ottawa, Ontario
Hanwha Ocean and PCL Construction have signed a Teaming Agreement to further advance collaboration on submarine maintenance, repair, and overhaul (MRO) infrastructure as part of the Canadian Patrol Submarine Project (CPSP). The agreement builds on a Memorandum of Understanding signed last year by the two companies, and reflects a shared interest in developing a more structured and integrated approach to collaboration in Canada.
At the centre of the partnership is the opportunity to support the development of submarine MRO infrastructure on both coasts, including facilities in Esquimalt, British Columbia and Halifax, Nova Scotia. Such infrastructure is widely seen as a key component in enabling Canada to sustain and operate its submarine fleet over the long term.
PCL, one of Canada’s leading construction firms, brings extensive experience in delivering large-scale infrastructure projects across the country, including for the Government of Canada, the Department of National Defence and the Canadian Armed Forces, along with a well-established domestic supply chain and skilled workforce. PCLs involvement highlights the role of Canadian industry in any future infrastructure development related to CPSP.
Hanwha Ocean contributes experience in submarine design, construction, and sustainment, based on decades of involvement in naval programs. The company’s background in integrating complex systems and supporting lifecycle operations provides a foundation for potential collaboration in submarine infrastructure.
The two companies are aligning their capabilities across design, engineering, construction, and supply chain coordination to support Canada’s evolving submarine infrastructure requirements. The collaboration reflects a broader trend toward partnerships that combine international technical experience with domestic industrial capacity. Such approaches are increasingly seen as a way to support long-term capability development while ensuring meaningful participation from local industry.
Quotes
“In partnership with PCL Construction, Hanwha is committed to building the critical infrastructure at the core of Canada's sovereign submarine ISS capability. By combining Hanwha's real-world submarine ISS facility operations and know-how with PCL's world-class construction expertise, we will deliver a lasting, Canada-led foundation built to sustain sovereign submarine operations for generations to come.”
VAdm (Ret.) Steve Jeong, Senior Executive Vice President and Head of Naval Ship International Business, Hanwha Ocean
“PCL Construction is proud to expand our relationship with Hanwha Ocean as we collaborate on the planning and construction of infrastructure supporting the Canadian Patrol Submarine Project. We bring extensive experience partnering with the Government of Canada, the Department of National Defence, and the Canadian Armed Forces on projects across the country. We believe PCL’s expertise and collaborative approach will be a strong asset to the Hanwha Ocean team in delivering this critical national initiative.”
Mike Wieninger, Chief Operating Officer, Canadian Operations, PCL Construction
About the KSS-III Canadian Patrol Submarine (www.KSS-III.ca)
Hanwha Ocean’s KSS-III is a proven, in-service, in-active production submarine that fully meets and exceeds all requirements for the Canadian Patrol Submarine Project (CPSP). These include superior underwater surveillance capability and deployability in the Arctic with extended range and endurance that will provide stealth, persistence and lethality to ensure that Canada can detect, track, deter and, if necessary, defeat adversaries in all 3 of its oceans.
Equipped with Lithium-ion batteries and an Air Independent Propulsion (AIP) system, the KSS-III offers the longest submerged endurance among any conventional submarine – exceeding 7,000 nautical miles. It is outfitted with both a state-of-the-art sonar system and acoustic tiles, offering outstanding target detection capability and advanced stealth performance. The platform is fully optimized for Anti-Submarine Warfare, Anti-Surface Warfare, Intelligence, Surveillance and Reconnaissance (ISR), Minelaying, and Special Operations Forces (SOF) support.
Importantly, Hanwha Ocean has the fastest delivery schedule, able to deliver four KSS-III submarines to fully replace Canada’s current Victoria Class fleet before 2035 if on contract in 2026. Earlier retirement of the Victoria Class fleet will result in estimated savings of approximately $1 Billion on maintenance and support costs. The additional 8 submarines will be delivered at a rate of one per year, meaning the entire fleet of 12 submarines will be delivered to Canada by 2043. No other option can come anywhere close to this delivery schedule.
About Hanwha Ocean (www.HanwhaOcean.com)
Hanwha Ocean is a leading global shipbuilder with more than four decades of experience in complex naval and commercial shipbuilding programs. Supported by its large-scale, integrated shipyard in Geoje, South Korea that spans 5-square kilometers and has more than 31,000 employees, the company combines proven industrial capacity with operational experience to deliver modern, in-service naval platforms backed by a resilient through-life support model.
Since its establishment in 1973, Hanwha Ocean has delivered more than 1,400 vessels worldwide and has built deep expertise in the design, construction and sustainment of submarines and surface combatants for the Republic of Korea Navy. The company builds approximately 45 commercial and naval ships each year.
Hanwha Group, a Fortune 500 company with more than 100,000 employees and 91 subsidiaries globally, is the Republic of Korea’s leading defence company. Other Hanwha business areas include aerospace and mechatronics, energy and ocean solutions, finance, and retail and services.
Hanwha is committed to establishing a robust and long-term presence in Canada in several strategic areas that will create jobs and economic growth, accelerate Canada’s domestic defence capabilities, and enhance cooperation, partnership and supply chains between Canada and South Korea – a relationship that is becoming increasingly important, and one that supports the objectives of Canada’s Indo-Pacific Strategy.
Hanwha has teaming agreements and MOUs in place with more than 30 Canadian companies.
About PCL Construction (www.PCL.com)
PCL Construction is one of the most respected and accomplished global construction leaders, comprising independent companies operating throughout Canada, the United States, the Caribbean and Australia. With an annual construction volume of $13.8 billion CAD, PCL builds projects that shape communities and strengthen infrastructure. The company’s 100% employee ownership model fuels a culture of commitment for clients in the buildings, civil infrastructure, heavy industrial and solar markets. With a strategic presence in more than 30 major centers, PCL’s leadership teams consistently drive innovation and set new benchmarks for excellence, bringing unparalleled skill to every project. Watch us build at PCL.com.
Noah Note: Another upgrade to a Teaming Agreement for Hanwha. The interesting thing to me is the mentions of Esquimalt and Halifax for potential MRO facilities, something I don't believe Hanwha has done before. Interesting…
Didn't I read something a couple weeks ago (which I can't find now) that DND bought the old Velero Oil property just South West of Shearwater? Possible use for this.