The contest to build Canada’s next submarine fleet has narrowed to Hanwha Group and German warship builder TKMS, with both contenders tying their offers to large investment plans in the Canadian economy.

In a statement issued on Friday, Hanwha Group said that cooperation with Canadian partners across multiple industries, including shipbuilding, is expected to support the creation of no fewer than 200,000 jobs in Canada by 2040. The group framed the pledge as part of its wider drive to secure the submarine contract.

The conglomerate, whose activities range from defence systems to commercial shipbuilding, outlined a long-term plan to invest in Canadian sectors such as steel, artificial intelligence, aerospace and shipbuilding. The company did not put a figure on the planned spending and offered no additional detail on the timing or structure of the investments.

According to industry sources, the tender to supply Canada with a new fleet of submarines is valued at more than $12 billion. Hanwha Group is one of two remaining finalists in the programme, competing directly with TKMS.

In comments to Reuters earlier in the week, TKMS chief executive Oliver Burkhard said the German company is in talks with firms in Norway and Germany to assemble an investment proposal worth several billion dollars for Canada, also aimed at strengthening its own bid for the submarine deal.

Beyond the Canadian contest, Hanwha Group has been expanding its presence in North America. The group has acquired Philly Shipyard in the United States and committed an additional $5 billion in investment, a move that has received public backing from U.S. President Donald Trump.