Canada is in talks to purchase up to twelve submarines from German shipbuilder ThyssenKrupp Marine Systems (TKMS), as announced by Prime Minister Mark Carney. This decision concludes a competitive process to replace Canada’s aging fleet of Victoria-Class submarines, with bids from South Korea’s Hanwha Ocean and Germany and Norway’s TKMS offering more than just submarine procurement.
TKMS proposed delivering four Type 212CD submarines to the Royal Canadian Navy by 2036, with the first expected by 2034. This aligns closely with the South Korean bid, which also offered to deliver four submarines by 2035. Given that Canada’s current fleet of Victoria-Class submarines is set for retirement in the mid-2030s, the timing of the procurement is crucial, especially since only one submarine is currently operational.
In Halifax, Carney highlighted the difficulty in choosing between TKMS and Hanwha, stating that both met the Royal Canadian Navy’s high standards. Moving forward with TKMS, Canada will now engage in negotiations to potentially acquire up to 12 submarines.
One key aspect of the deal is the requirement that the investment’s value must be matched by economic benefits to Canada. TKMS has committed to investing “tens of billions of dollars” across various sectors, including space, munitions, autonomous technology, critical minerals, and research and development, creating over 100,000 well-paying jobs nationwide.
The German offer aligns with Canada’s economic goals, including boosting LNG production to 50 million tonnes annually by 2030. Additionally, TKMS proposed constructing a maintenance facility, manufacturing torpedoes, and establishing a carbon capture facility in partnership with Alberta.
The TKMS platform’s compatibility with NATO forces was emphasized, as it is designed for Arctic waters and is fully interoperable with NATO standards. This partnership strengthens ties with NATO and Europe, while still aligning with Canada’s Indo-Pacific strategy.
The announcement is expected to bring substantial economic benefits to Halifax and the West Coast, with Carney foreseeing long-term shipbuilding and maintenance activities. The benefits are projected to extend across Canada, marking the beginning of a significant economic opportunity.