Canada has selected German shipbuilder TKMS to build a new fleet of submarines, marking the country\u2019s largest defense procurement to date. Prime Minister Mark Carney announced the decision on July 6 in Halifax, Nova Scotia, confirming that the German company had defeated South Korea\u2019s Hanwha Ocean in a closely watched international competition.<\/p>\n
The selection clears the way for negotiations on a contract expected to be finalized by the end of the year. TKMS will supply its Type 212CD submarines, a design already under construction for Germany and Norway. The vessels will replace the Royal Canadian Navy\u2019s aging Victoria-class submarines, with the first delivery planned for 2033.<\/p>\n
While Carney did not disclose the contract value, the full program is estimated to reach about $70 billion (CAD 100 billion) over its lifetime. That figure includes submarine construction, maintenance, infrastructure, weapons, and long-term support.<\/p>\n
New fleet to replace aging submarines<\/p>\n
The new submarines are expected to modernize Canada\u2019s underwater abilities as the current Victoria-class fleet approaches retirement in the mid-2030s. Officials said the first submarine is set to arrive in 2033, with three more expected the following year.<\/p>\n
Measuring about 240 feet (73 meters) in length and displacing approximately 3,307 U.S. tons, the vessel<\/a> is designed for longer deployments, with greater mission payload capacity and improved onboard living conditions for crews operating on extended missions.<\/p>\n TKMS secured the project over Hanwha Ocean, which had proposed its KSS-III submarine. \u201cThis was a difficult, close decision between two highly qualified suppliers,\u201d Carney said in making the announcement in Halifax, Nova Scotia. \u201cBoth the TKMS and the Hanwha platforms met the very high capabilities of the Royal Canadian Navy, and both of them put forward strong proposals to maximize benefits for Canadian workers and businesses.\u201d<\/p>\n \u201cIn the end, this decision was about choosing the absolute best platform and partnership to meet Canada\u2019s combined strategic, security and economic interests,\u201d Carney said<\/a>.<\/p>\n Procurement supports NATO goals and industry<\/p>\n The announcement came one day before the NATO Summit in Turkey. Canada currently spends 2.1 percent of its GDP on defense and has pledged to raise that figure to 5 percent by 2035. Carney said the submarine program would strengthen Canada\u2019s military while creating new opportunities for domestic industry.<\/p>\n \u201cThese subs will strengthen our defense industrial base, they will deepen our partnerships with trusted allies, and they will open new opportunities for Canadian businesses in European supply chains,\u201d he added.<\/p>\n TKMS CEO Oliver Burkhard welcomed the decision and said the company is ready to work closely with Canada and its international partners.<\/p>\n \u201cWe stand ready to work alongside the government of Canada, Canadian industry and our partners in Germany and Norway to deliver a world-class submarine capability that will strengthen security, create economic opportunity and generate lasting benefits for future generations,\u201d Burkhard said<\/a>.<\/p>\n Hanwha vows to expand Canadian ties<\/p>\n Hanwha Canada said it was disappointed with the result but said the competition showed the strength of South Korea\u2019s defense industry.<\/p>\n \u201cThe team at Hanwha have demonstrated to the Canadian public and government that there is unlimited potential to unlock within the South Korean defense industrial base and that Hanwha and its business divisions will continue to grow aside from today\u2019s decision,\u201d Copeland said in a statement. \u201cWe look forward to continuing to demonstrate why Hanwha is the backbone of the world\u2019s fourth-largest defense export nation.\u201d<\/p>\n