Hanwha Ocean Selects Canada’s Hepburn Engineering for Republic of Korea Navy AOE-II Project

Hepburn will provide its Replenishment-at-Sea System under this Multi-Million USD Contract

Hanwha Ocean has awarded a multi-million USD contract to Toronto-based Hepburn Engineering for its Replenishment-at-Sea (RAS) system. The system will be installed on the Republic of Korea (ROK) Navy’s AOE-II (Auxiliary Oiler and Explosives) vessels and is being procured as part of a larger USD $332 million fast combat support ship order that Hanwha Ocean secured from Korea’s Defence Acquisition Program Administration (DAPA) in August 2024.

This contract marks a significant milestone in defence cooperation between South Korea and Canada and demonstrates Hanwha Ocean’s commitment to establishing meaningful partnerships with Canadian companies as part of Canada’s Industrial and Technological Benefits (ITB) framework which requires companies awarded defence contracts to generate economic activity in Canada equal to the value of the contract. Hanwha Ocean’s decision to incorporate Hepburn Engineering in the AOE-II supply chain was directly influenced by Hepburn’s previous successful supply of RAS equipment for the ROK Navy and the anticipation of future ITB obligations to Canada.

The RAS system will be a critical component in enabling high-speed auxiliary vessels, often referred to as the naval equivalent of aerial tankers, to replenish ROK Navy task groups with fuel, ammunition and provisions. This AOE-II vessel is expected to be delivered to the ROK Navy by December 2028. Hepburn will deliver its RAS system to Hanwha Ocean by December 2026 following a comprehensive engineering and integration process.

Quotes

“We see significant opportunities for synergies between Hanwha Ocean and Canadian partners like Hepburn Engineering. Collaboration on important projects like this will enhance and strengthen the relationship between Canada and South Korea.”

  • Michael Coulter, President & CEO, Hanwha Global Defence

“Hepburn is very proud to have been selected by Hanwha Ocean to be a supplier on this important project for the Republic of Korea Navy. Having successfully delivered our system for the first ship in class, we’re now privileged to provide the same trusted capability for the second vessel in this important program. We plan to work very closely and collaboratively with Hanwha Ocean to ensure delivery of our Replenishment-at-Sea system is on spec, on time and on budget.”

  • John Hepburn, President & CEO, Hepburn Engineering