Canada Defence
Canada selects German firm TKMS for record submarine procurement
Ottawa: Canada has selected Germany's Thyssenkrupp Marine Systems (TKMS) as the preferred supplier to build a new fleet of up to 12 submarines in what the federal government described as the largest defence procurement in the country's history.
Canadian Prime Minister Mark Carney announced Saturday that the project, which will replace the Royal Canadian Navy's ageing Victoria-class submarines, marks a major step in Canada's military modernisation and Arctic defence strategy.
The government said it aims to finalise a contract by the end of 2027, with the first four submarines expected to enter service in 2034.
The submarines will be based on TKMS' Type 212CD design, jointly developed with Germany and Norway.
According to the government, the vessels are designed for Arctic operations, underwater surveillance, special forces deployment and NATO missions, while featuring ultra-low acoustic and magnetic signatures to enhance stealth capabilities.
The procurement comes as Canada seeks to strengthen its military capabilities amid growing geopolitical tensions and increasing strategic competition in the Arctic.
According to a statement, Ottawa has committed to significantly increasing defence spending, reaching NATO's benchmark of 2% of GDP for the first time in decades and pledging to meet the alliance's new 5% target by 2035.
Carney said the acquisition would enhance Canada's ability to defend its coastlines and northern approaches while strengthening defence partnerships with NATO allies.
The Canadian Patrol Submarine Project will deliver up to 12 submarines to replace the Victoria-class fleet, only one of which is currently considered fully operational. The existing fleet is expected to remain in service into the mid-to-late 2030s as the new vessels are delivered.
Negotiations with TKMS will now begin to finalise contractual and industrial arrangements. Should talks fail, South Korea's Hanwha Ocean, identified as the reserve bidder, could be invited to negotiate instead.
The project will also be subject to Canada's Industrial and Technological Benefits Policy, requiring investments in Canadian suppliers and defence industries.
The government said the procurement is expected to create high-skilled jobs, strengthen domestic supply chains and generate long-term economic benefits across the country.
The procurement is being managed through Canada's Defence Investment Agency under the country's Defence Industrial Strategy, which aims to modernise military acquisitions while expanding Canada's defence manufacturing base.
Speaking at Canadian Forces Base Halifax, Carney called the submarine programme a strategic investment in Canada's sovereignty, particularly in the Arctic, where climate change and growing military activity have heightened security concerns.
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