Seoul Official: Canada's Submarine Bid Choice Reflects Alliance Strategy

SEOUL, July 7 (Yonhap) -- Canada's selection of Germany's Thyssenkrupp Marine Systems (TKMS) as the preferred bidder for its major submarine project over a South Korean consortium appeared to reflect its strategic decision to strengthen its existing transatlantic alliance, a Seoul official said Tuesday.

Canadian Prime Minister Mark Carney announced Monday (local time) that Ottawa has chosen Germany's TKMS against the Korean consortium, led by Hanwha Ocean Co. and HD Hyundai Heavy Industries Co., for the project to supply up to 12 diesel-electric submarines to the Royal Canadian Navy.

South Korea's state arms procurement agency said Canada appeared to be weighing two key issues -- whether to strengthen its traditional ties with the North Atlantic Treaty Organization (NATO) or to expand its defense cooperation into the Indo-Pacific. Germany is also a NATO member.

"(For Canada), cooperation with us in the Indo-Pacific is something that it could build for the future, but the transatlantic alliance has been maintained for more than 70 years," an official at the Defense Acquisition Program Administration (DAPA) told reporters.

"Canada appeared to opt to strengthen its existing alliance after strategic consideration."

The DAPA official struck a positive note on future export opportunities for South Korean submarines, saying the Canadian submarine bid was a chance for South Korea to "showcase" its capabilities.

The project involves the construction of up to 12 diesel-electric submarines under a procurement program valued at up to 60 trillion won (US$39.1 billion), including construction and long-term maintenance.