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Hanwha Ocean offers Poland financing deal for submarines
Published by Global Banking and Finance Review
Posted on June 27, 2025
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Published by Global Banking and Finance Review
Posted on June 27, 2025
WARSAW (Reuters) -Hanwha Ocean has added a comprehensive financing deal to its proposal to sell Poland submarines, the South Korean shipbuilder said on Friday, as it battles rival European bidders.
Poland is seeking to buy three submarines under its "Orka" programme as part of an expansion of its military to counter what it says is a growing threat from Russia following Moscow's 2022 invasion of neighbouring Ukraine.
Polish media have reported that offers from fellow-NATO and European Union members Germany, Italy and Sweden were frontrunners in the multibillion-dollar programme, with a decision expected later this year.
Hanwha Ocean is offering its KSS-III Batch-2 vessels, with the first delivery possible early next decade, and an older KSS-I submarine, currently used by the South Korean navy, as an interim solution or "gap-filler" for the Polish navy to start training on as soon as 2028.
"Our reinforced proposal is built on three core areas: providing robust financial support, helping enhance Poland's defence capabilities, and deepening industrial cooperation with Polish partners," Jaemin Kim, Orka programme manager at Hanwha Ocean, told a press briefing in Warsaw.
"We know that financing is a critical enabler of the Orka programme, and that is why we are already working with the new Korean government, which is also strongly committed to supporting defence exports, to prepare a financing package tailored for Poland," he added.
The commercial bank financing offer, the result of an international tender, is independent of EU funds, Hanwha Ocean said in a press release, adding that in parallel, long-term financial instruments supported by the South Korean government were also being considered.
"Hanwha Ocean can deliver the first (KSS-III) submarine within six years of contract signing, one of the shortest timelines in the industry today," Kim added.
"Our base proposal envisions delivering each follow-on submarine every 12 to 18 months. But, however, if the Polish Navy prefers, we can accelerate the delivery of the second and third submarines, potentially reducing the total programme timeline."
(Reporting by Karol BadohalEditing by Mark Potter)