South Korean shipbuilder ends Hamilton training partnership after losing submarine contract

A South Korean shipbuilder is ending its partnership with Mohawk College and Ontario Shipyards in Hamilton after losing a bid to build Canada's new submarine fleet. The company signed a memorandum of understanding in February to help create a naval training and recruitment vessel and a shipbuilding training hub. The agreement was tied to the company winning the Canadian Patrol Submarine Project.

Partnership ends after contract decision A spokesperson for the South Korean firm said the partnership stops because Canada chose German company ThyssenKrupp Marine Systems instead. The multibillion-dollar program is expected to be Canada's largest defence purchase.

Ontario Shipyards CEO Sean Padulo told CBC the company will continue building the training vessel on speculation with Mohawk College. Mohawk spokesperson Sean Coffey confirmed the college and Ontario Shipyards have a standalone agreement that will remain in place.

Value of lost support Ontario Shipyards vice-president Ted Kirkpatrick said Hanwha's contribution would have involved knowledge and technology transfer that was difficult to quantify in dollars but would have been significant. A January news release from the South Korean firm said it had expanded Canadian partnerships in steel, space, artificial intelligence and advanced technologies.

Prime Minister Mark Carney said the government will negotiate with the German company for several months. If those talks fail, Canada can still designate the South Korean firm's design as the preferred supplier.