Hanwha Ocean Offers Comprehensive Financing Deal in Bid to Sell Submarines to Poland

South Korean shipbuilder, Hanwha Ocean, has upped the ante in its bid to sell submarines to Poland by including a comprehensive financing deal in its proposal. This move comes as the company faces stiff competition from European bidders vying for the lucrative contract.

Poland is looking to purchase three submarines as part of its “Orka” program aimed at bolstering its military capabilities in response to the perceived threat from Russia following the 2022 invasion of Ukraine. Reports suggest that Germany, Italy, and Sweden are among the front-runners in the multibillion-dollar program, with a final decision expected later this year.

Hanwha Ocean has put forward its KSS-III Batch-2 submarines for consideration, with the possibility of the first delivery as early as the beginning of the next decade. In addition, the company is offering an older KSS-I submarine, currently in use by the South Korean navy, as an interim solution to allow the Polish navy to commence training as soon as 2028.

“Our reinforced proposal focuses on three key areas: providing robust financial support, enhancing Poland’s defense capabilities, and deepening industrial cooperation with Polish partners,” said Jaemin Kim, Orka program manager at Hanwha Ocean, during a press briefing in Warsaw.

Kim emphasized the importance of financing in enabling the Orka program and highlighted the company’s collaboration with the new Korean government to tailor a financing package specifically for Poland. The offer includes commercial bank financing, independent of EU funds, as well as long-term financial instruments supported by the South Korean government.

“Hanwha Ocean is committed to delivering the first submarine within six years of contract signing, one of the shortest timelines in the industry today,” Kim added. “We also have the flexibility to accelerate the delivery of subsequent submarines if the Polish Navy prefers, potentially shortening the overall program timeline.”

With its comprehensive financing deal and a focus on strengthening Poland’s defense capabilities, Hanwha Ocean is positioning itself as a serious contender in the submarine procurement competition. The company’s commitment to collaboration and innovation sets it apart in the highly competitive defense industry.

Source: Reuters