Canada is in negotiations to purchase around a dozen submarines from German shipbuilder ThyssenKrupp Marine Systems (TKMS), as announced by Prime Minister Mark Carney. This decision marks the conclusion of a competitive process to replace Canada’s aging Victoria-Class submarine fleet. Both South Korea with Hanwha Ocean and a joint bid from Germany and Norway with TKMS presented comprehensive proposals that went beyond just submarine procurement, promising substantial investments in Canada’s economy.
TKMS has offered to supply four Type 212CD submarines to the Royal Canadian Navy by 2036, with the first one expected by 2034. This aligns closely with the South Korean bid, which also committed to delivering four submarines by 2035. The timely delivery is crucial as Canada’s current Victoria-Class submarines are set to retire in the mid-2030s, with only one operational currently.
Prime Minister Carney emphasized the importance of the decision, stating that both TKMS and Hanwha Ocean met the Royal Canadian Navy’s high standards. Choosing the TKMS bid initiates negotiations for the potential acquisition of up to 12 submarines. Additionally, Carney confirmed that the deal stipulates that the full value of the government’s investment must be matched by economic benefits to Canada, with TKMS committing to tens of billions of dollars in investments across various sectors.
The TKMS contract is expected to generate over 100,000 well-paying jobs across Canada, with opportunities in submarine construction and roles such as welders, engineers, and researchers. The bid aligns with Canada’s economic goals, including the expansion of LNG production.
TKMS proposed several significant investments, including the construction of a maintenance facility and manufacturing centers for torpedoes and anti-torpedo systems. The German government also suggested using TKMS technology for carbon capture in partnership with Alberta and transforming Manitoba’s Port of Churchill into an LNG and mineral export hub.
The compatibility of the TKMS submarines with NATO forces was highlighted as a key advantage, as the vessels are optimized for Arctic operations and offer full interoperability with NATO. This deal further strengthens ties with Germany and NATO, enhancing Canada’s defense capabilities.
While the agreement with TKMS signifies a significant step, Carney stressed that Canada remains committed to its Indo-Pacific strategy. Hanwha Ocean remains the reserve supplier for the submarine replacement program, ready to step in if negotiations with TKMS falter.
Carney emphasized the positive impact the submarine deal will have on Canada’s coasts, particularly in Halifax and on the West Coast, with long-term economic benefits expected. The Prime Minister highlighted the potential for substantial shipbuilding and maintenance activity in Halifax for years to come, indicating that this deal is just the beginning of the economic benefits that will be realized across the country.