Canada is in negotiations with German shipbuilder ThyssenKrupp Marine Systems (TKMS) to purchase around twelve submarines, Prime Minister Mark Carney has revealed. This decision concludes a competitive process to replace Canada’s aging Victoria-Class fleet, with both South Korea’s Hanwha Ocean and Germany and Norway’s TKMS offering substantial investments beyond just submarine procurement.
TKMS has proposed delivering four Type 212CD submarines to the Royal Canadian Navy by 2036, with the first expected by 2034, aligning closely with Hanwha’s offer. This timing is crucial as Canada’s current Victoria-Class submarines are scheduled for retirement in the mid-2030s, with only one operational at present.
Carney emphasized the difficulty in choosing between the two highly qualified suppliers, ultimately selecting TKMS for negotiations to potentially acquire up to 12 submarines. The deal includes a requirement for TKMS to match the federal government’s investment value with economic benefits to Canada, estimated to bring in tens of billions of dollars in investments and create over 100,000 well-paying jobs.
Germany’s bid aligns with Canada’s economic goals, aiming to boost LNG production and create additional employment opportunities. The proposal includes the construction of a maintenance facility and manufacturing centers in Canada, with Manitoba’s Port of Churchill potentially becoming a key export hub. The Germans also proposed a carbon capture facility in partnership with Alberta.
Moreover, TKMS’s platform is NATO interoperable, enhancing compatibility with NATO forces and offering opportunities for joint missions. Despite opting for the German bid, Canada remains committed to its Indo-Pacific strategy, with Hanwha serving as the reserve supplier should negotiations with TKMS falter.
Carney highlighted the significant economic benefits expected for Canada’s coasts, particularly in Halifax and on the West Coast. He emphasized that this deal marks the beginning of long-term economic activity and growth across the country.
