The CEO of ThyssenKrupp Marine Systems (TKMS), the German company selected to build Canada’s new submarines, is advocating for increased collaboration among European shipbuilders. This initiative could impact Canada as the navy evaluates the addition of corvettes to its fleet.
Oliver Burkhard emphasized TKMS’s recent partnership with Navantia S.A., a Spanish government-owned company, to explore joint naval projects, potentially including the production of TKMS submarine designs at Navantia’s shipyards in Spain. Burkhard stressed the importance of cooperation among shipbuilders to meet the rising demand for warship construction.
According to Burkhard, there has been a shift in the market with a growing need for warships. A report by Imarc forecasts a more than five percent increase in demand for warships over the next decade. Apart from submarines, the Canadian navy is constructing River-Class destroyers and has expressed interest in acquiring smaller, cost-effective, ice-capable corvettes.
Irving Shipbuilding in Halifax is currently building the destroyers under the National Shipbuilding Program. As Canada lacks modern submarine construction expertise, the planned 12 submarines will be manufactured in Germany. Burkhard, ahead of his visit to Ottawa, where he will meet with TKMS partners for the Canadian submarine program, anticipates finalizing a contract with the German shipbuilder by the end of 2027.
Burkhard hinted at the possibility of supplying TKMS’s MEKO A-100 corvette design to a Canadian shipyard, potentially enhancing Canada’s defense-industrial capabilities. While this concept was not part of the submarine bid, Burkhard confirmed that it was under consideration. The navy identified the need for corvettes last year, conducting an analysis to determine the role and capabilities of such vessels.
Acknowledging the challenges in shipbuilding, Burkhard likened the current market conditions to the creation of Airbus in the 1960s. He emphasized the importance of closer cooperation among European shipyards, particularly in submarine construction, to address varying capacities among companies. Despite the complexity, Burkhard suggested that the industry could lead a maritime equivalent of Airbus to foster collaboration.
The imperative for enhanced partnerships among European defense firms was underscored by a study from the Center for Strategic and International Studies three years ago, emphasizing the need for increased defense spending coupled with greater cooperation among European nations.