Canada Selects Germany's TKMS to Build Up to 12 New Submarines in Historic Defence Project

The Canadian government has selected Germany's Thyssenkrupp Marine Systems (TKMS) as the preferred supplier to replace the Royal Canadian Navy's aging submarine fleet. Prime Minister Mark Carney made the announcement during a visit to the Canadian Armed Forces base in Halifax on Monday, confirming that the government will begin formal negotiations with TKMS for the purchase of up to 12 new submarines. Prime Minister Carney said the negotiations are commercially sensitive and, therefore, the terms of the discussions and the total project cost will not be made public until a final agreement is reached. However, he assured that the necessary funding has already been allocated in the federal budget, describing the program as the largest defence procurement project in Canadian history. A key condition of the proposed agreement requires the German company to make industrial investments within Canada equal to the value of Canada's investment. The government expects this requirement to strengthen the country's defence industry, supply chain, and high-skilled employment opportunities. Officials aim to finalize the contract by the end of 2027. Under the proposed timeline, the first four submarines are expected to be delivered to the Royal Canadian Navy by 2034. The existing Victoria-class submarines are expected to be retired by 2035. Canada currently operates four Victoria-class submarines, but only one is fully operational, while parts from the remaining vessels are being used to keep the fleet functioning. Prime Minister Carney also announced that South Korea's Hanwha Ocean has been designated as the reserve supplier. If negotiations with TKMS do not result in a final agreement, the government will move forward with discussions with Hanwha Ocean. He noted that both companies presented strong proposals, making the selection process highly competitive. According to the Canadian government, TKMS has proposed its advanced 212CD-class submarines, which are designed with extremely low acoustic and magnetic signatures. These features enhance their ability to avoid detection by enemy sonar systems. The submarines are intended for patrol, intelligence gathering, and joint operations with NATO allies across the Atlantic, Pacific, and Arctic regions. The government added that TKMS has proposed adjusting the production schedule of submarines currently being built for Germany and Norway, making it possible for Canada to receive its first batch by 2034. As one of Europe's leading manufacturers of conventional submarines, TKMS will also enable greater interoperability among the naval forces of Canada, Germany, and Norway through the use of the same submarine platform, improving training, maintenance, and operational coordination.