Canada has revealed plans to purchase up to twelve submarines from German shipbuilder ThyssenKrupp Marine Systems (TKMS), as announced by Prime Minister Mark Carney, concluding a competitive process to replace the aging Victoria-Class submarine fleet. Both TKMS and Hanwha Ocean from South Korea, in collaboration with Germany and Norway, offered comprehensive proposals beyond simple submarine procurement, promising significant investments in Canada’s economy.
TKMS proposed delivering four Type 212CD submarines to the Royal Canadian Navy by 2036, with the first submarine expected by 2034. The German company closely matched the South Korean bid, which also aimed to provide four submarines by 2035. The replacement timing is crucial as the current Victoria-Class submarines are due for retirement in the mid-2030s, with only one operational currently.
Prime Minister Carney acknowledged the high qualifications of both suppliers but ultimately selected TKMS, initiating negotiations for the potential acquisition of up to twelve submarines. The deal stipulates that the value of Canada’s investment must be matched by economic benefits within the country, with TKMS committing to billions of dollars in investments across various defense and industrial sectors, generating over 100,000 jobs.
The German bid aligns with Canada’s economic objectives, including boosting LNG production to 50 million tonnes annually by 2030. Furthermore, Germany’s proposal includes investments in building maintenance facilities, manufacturing centers for torpedoes, and establishing a carbon capture facility in partnership with Alberta. The bid also integrates with NATO forces, as TKMS is an existing supplier for the alliance, ensuring compatibility and interoperability.
Carney highlighted the potential economic benefits for regions across Canada, particularly in shipbuilding and maintenance in Halifax and other coastal areas. While the German bid has been selected, Hanwha remains the backup supplier pending successful negotiations with TKMS, emphasizing Canada’s commitment to its Indo-Pacific strategy. The deal promises substantial economic activity and job creation throughout Canada, signaling the beginning of long-term benefits for the country.