Canada has revealed its plans to purchase around twelve submarines from the German shipbuilder ThyssenKrupp Marine Systems (TKMS), according to Prime Minister Mark Carney. This decision concludes a rigorous competition to replace Canada’s aging Victoria-Class submarine fleet. Both contenders, South Korea with Hanwha Ocean and the joint bid from Germany and Norway with TKMS, offered not just submarines but also significant investments in Canada’s economy.
TKMS has proposed delivering four Type 212CD submarines to the Royal Canadian Navy by 2036, with the first one expected by 2034. This aligns closely with the South Korean offer to deliver four submarines by 2035. With Canada’s current Victoria-Class submarines set for retirement in the mid-2030s, the timing of the deal is crucial.
Carney stated that selecting the TKMS bid will lead to negotiations for the acquisition of up to twelve submarines. The deal includes a condition that all of the federal government’s investment must be matched by economic benefits for Canada, amounting to “tens of billions of dollars” and over 100,000 well-paying jobs across various regions.
As part of its bid, TKMS has committed to making substantial investments in Canada’s defense and industrial sectors, including space, munitions, autonomous technology, critical minerals, and research and development. The proposed investments could contribute significantly to Canada’s GDP, with an estimated $86 billion boost.
Germany’s bid aligns with several of Canada’s economic objectives, such as increasing LNG production. Additionally, TKMS has suggested building a maintenance facility on a Canadian coast and establishing manufacturing centers for torpedoes and anti-torpedo systems.
The TKMS submarines are designed to be fully NATO interoperable, enhancing Canada’s ties with NATO forces. This partnership with Germany further solidifies Canada’s global defense relationships. Despite choosing the German bid, Canada remains committed to its Indo-Pacific strategy, with Hanwha still in line as the reserve supplier if negotiations with TKMS do not succeed.
Carney highlighted the potential economic benefits for Canada’s coasts, particularly Halifax and the West Coast, where shipbuilding and maintenance activities could thrive for years to come. He emphasized that the benefits of this deal will be felt nationwide, marking a significant milestone for Canada’s defense procurement history.
