Canada has disclosed plans to purchase a potential twelve submarines from the German shipbuilder ThyssenKrupp Marine Systems (TKMS), as announced by Prime Minister Mark Carney. This decision marks the conclusion of a competitive process to replace Canada’s aging Victoria-Class submarine fleet. Both competing bids, one from South Korea with Hanwha Ocean and the other from Germany and Norway with TKMS, offered not only submarines but also substantial investments in Canada’s economy.
TKMS proposed to supply 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 bid, which also aimed to deliver four submarines by 2035. The timing is crucial as Canada’s current fleet of four Victoria-Class submarines is due for retirement by the mid-2030s, with only one currently operational.
In Halifax, Carney stated that choosing TKMS was a challenging decision between two highly qualified suppliers, emphasizing that both platforms met the Royal Canadian Navy’s high standards. The selection of TKMS now initiates negotiations for the potential acquisition of up to twelve submarines.
Carney highlighted that the agreement with TKMS includes a stipulation that the full value of the federal investment must be matched in economic benefits to Canada. He mentioned that TKMS is expected to invest “tens of billions of dollars” in various defense and industrial sectors, creating over 100,000 well-paying jobs across the country.
The German proposal includes significant investments, such as the construction of a maintenance facility on Canadian coasts and manufacturing centers for torpedoes and anti-torpedo systems. Additionally, the Germans proposed transforming Manitoba’s Port of Churchill into a major export hub for Canadian liquefied natural gas and critical minerals. They also suggested establishing a carbon capture facility in partnership with Alberta.
The bid from TKMS aligns with Canada’s economic objectives, including the goal to increase LNG production to 50 million tonnes annually by 2030. The submarines offered by TKMS are designed for Arctic waters and are fully interoperable with NATO forces, fostering deeper ties with NATO and Europe.
Carney reassured that opting for the German bid does not shift Canada away from its Indo-Pacific strategy. While TKMS is the selected supplier, Hanwha remains the reserve supplier pending the outcome of negotiations. The announcement in Nova Scotia highlighted the potential economic benefits for Halifax in shipbuilding and maintenance activities, with the West Coast also expected to benefit from the German and Norwegian contract. Carney emphasized that this deal signifies the beginning of substantial economic activity benefiting Canada’s coasts.
