Canada’s plan to purchase up to twelve submarines from German shipbuilder ThyssenKrupp Marine Systems (TKMS) was revealed by Prime Minister Mark Carney, concluding a fierce competition to replace the aging Victoria-Class boats. The bids from South Korea’s Hanwha Ocean and the joint bid from Germany and Norway with TKMS included commitments to make significant investments in Canada’s economy beyond just submarine procurement.
TKMS has offered to supply four Type 212CD submarines to the Royal Canadian Navy by 2036, with the first submarine expected by 2034. This aligns with the timeline proposed by the South Korean bidder to deliver four submarines by 2035. The urgency stems from the impending retirement of the navy’s Victoria-Class submarines in the mid-2030s, with only one currently operational.
Prime Minister Carney emphasized the difficulty in choosing between the two highly qualified bidders, highlighting that both met the Royal Canadian Navy’s high standards. The selection of the TKMS bid now initiates negotiations for the potential acquisition of up to twelve submarines.
As part of the deal, TKMS is obligated to provide economic benefits equivalent to 100% of the federal government’s investment, translating into tens of billions of dollars in investments across various defense and industrial sectors in Canada. The project is expected to create over 100,000 jobs nationwide, with a focus on roles such as welders, engineers, and researchers during the initial construction phase.
Germany’s proposal includes establishing a maintenance facility, manufacturing centers for torpedoes, and anti-torpedo systems in Canada. Additionally, plans to transform Manitoba’s Port of Churchill into a major export hub for Canadian liquefied natural gas (LNG) and critical minerals were put forward. The Germans also suggested collaborating with Alberta on a carbon capture facility using TKMS technology.
The bid from TKMS aligns with Canada’s economic objectives, particularly in increasing LNG production and creating job opportunities. The submarines’ compatibility with NATO forces is a significant advantage, as TKMS is already a supplier to the alliance. This deal further strengthens ties with Germany and complements Canada’s Indo-Pacific strategy.
The announcement is expected to bring substantial economic benefits to Canadian coasts, with Halifax and the West Coast poised to witness increased shipbuilding and maintenance activities. Prime Minister Carney emphasized that this deal marks the beginning of long-term economic growth and development across Canada.