Canada Selects ThyssenKrupp Marine Systems for Submarine Project
Canada has chosen the German maritime defense company ThyssenKrupp Marine Systems (TKMS) to construct a new fleet of 12 submarines, as announced by Prime Minister Mark Carney on Monday.
This contract marks what is said to be the largest defense procurement in Canadian history. It follows a competitive bidding process between TKMS and South Korean shipbuilder Hanwha Ocean for the Canadian Patrol Submarine project, which aims to replace the aging submarines currently used by the Royal Canadian Navy.
The deal involves acquiring the TKMS 212CD submarine fleet, which has been developed in collaboration with the German and Norwegian navies. The Canadian government describes these submarines as among the stealthiest around. The first four of the new submarines are expected to be delivered by 2034.
Carney made the announcement at Canadian Forces Base Halifax in Nova Scotia. Following this declaration, Canada and TKMS will enter negotiations to finalize the contract and related arrangements.
“These submarines will enhance our defense industrial base, strengthen partnerships with trustworthy allies, and create new opportunities for Canadian companies in European supply chains,” Carney elaborated.
Despite having the longest coastline in the world, Canada operates only four aging Victoria-class submarines, which were bought second-hand from Britain in 1998. The government has stated that three of these submarines are undergoing maintenance, leaving only one operational.
“In a more dangerous and divided world, Canada must be prepared to safeguard our interests, protect our citizens, enhance our economy, and secure our future,” Carney emphasized. “That’s why we are acting with urgency, ambition, and discipline to carry out the largest defense acquisition in our nation’s history.”
He further added that “Canada’s next fleet of submarines will safeguard our coastlines and waters, and their construction will yield considerable and long-lasting benefits for Canadian industry and workers.”
While the total cost of the submarines wasn’t disclosed, public broadcaster CBC reported that the purchase could reach up to C$24 billion (about $16.8 billion), with lifetime maintenance and upkeep costs potentially pushing the overall expense beyond $100 billion.
According to TKMS’s official statements, the project is projected to generate C$167 billion (approximately $117 billion) in total economic activity over its duration, with an economic impact estimated at over C$86 billion (around $60.4 billion) and the potential to create more than 650,000 jobs.
German Chancellor Friedrich Merz remarked that this decision is a positive sign for transatlantic and European cooperation, indicating Canada’s procurement of the 212CD-class submarines tailored for the German-Norwegian Navy.
The Canadian government has mentioned that if negotiations with TKMS do not proceed successfully, they retain the right to discuss the project with South Korea’s Hanwha Ocean.
This announcement came just before Carney’s visit to Ankara, Turkey, for the NATO summit this week. Reports indicate that Canada is committed to increasing its defense spending to 2% of GDP, aligning with NATO’s target of 5% by 2035.
Canada’s decision to select TKMS came two years after the country initiated a search for a contractor to develop a new submarine fleet in July 2024. The company’s established links to NATO appeared to play a significant role in its selection.
