Hanwha Ocean signed cooperation agreements with two Polish shipyards as the South Korean company seeks to position itself for Poland’s 8 trillion won ($5.8 billion) submarine procurement decision expected within months.
The shipbuilder announced memorandums of understanding with PGZ SW and Nauta shipyards at this week’s maritime defense exhibition in Busan, focusing on naval vessel construction and maintenance collaboration. Poland is expected to announce its selected preferred bidder in the coming weeks for the Orka program, which entails the procurement of three submarines.
The agreements represent Hanwha’s latest effort to differentiate itself in a competitive field that includes domestic rival HD Hyundai Heavy Industries. Both companies also submitted investment plans for Poland, including the establishment of local MRO facilities to anchor their presence within the country.
Poland’s submarine program has faced repeated delays, with the original completion target of 2023 now pushed to 2025. The country currently operates just one aging Soviet-era submarine and desperately needs modern replacements.
Hanwha has already benefited from Poland’s defense spending surge following Russia’s invasion of Ukraine, securing contracts worth billions for howitzers, rocket systems and tanks. However, the submarine deal faces intense international competition, and these partnership agreements may prove more symbolic than decisive in securing what would be one of South Korea’s largest naval export contracts.
