Hanwha Ocean has lost its bid to supply Canada’s next-generation submarine fleet, after Ottawa selected Germany’s TKMS as the preferred bidder for the megaproject, Canada’s Prime Minister Mark Carney said Monday. The decision marks a major setback for the Korean shipbuilder in Canada's 60 trillion won ($39.2 billion) project to replace the Royal Canadian Navy's aging fleet of four Victoria-class submarines with 12 new 3,000-ton diesel-electric vessels. The program also includes long-term maintenance, repair and overhaul (MRO) services. Carney formally announced the selection of TKMS before his departure for the North Atlantic Treaty Organization (NATO) leaders' summit in Turkey. Hanwha Ocean had pitched a variant of its 3,000-ton KSS-III Batch-II submarine. The vessel, developed for the Korean Navy, features fuel-cell propulsion and lithium-ion batteries, allowing it to remain submerged for over three weeks. However, TKMS — leveraging a joint bid backed by Norway — secured the advantage by promising a larger economic package and emphasizing its deep integration as a NATO ally s