Canada has revealed plans to purchase up to twelve submarines from German shipbuilder ThyssenKrupp Marine Systems (TKMS), marking the conclusion of a competitive process to replace the country’s aging Victoria-Class submarine fleet. The bids from South Korea’s Hanwha Ocean and the joint bid from Germany and Norway included commitments beyond submarine procurement, emphasizing significant investments in the Canadian economy.
TKMS proposed delivering four Type 212CD submarines to the Royal Canadian Navy by 2036, with the first one expected by 2034. The timing aligns with the retirement schedule of Canada’s current Victoria-Class submarines, of which only one remains operational. Prime Minister Mark Carney highlighted the high capabilities of both TKMS and Hanwha platforms but ultimately selected TKMS for negotiations to acquire up to twelve submarines.
One key condition of the deal is that TKMS must match the federal government’s investment value with economic benefits to Canada, estimated to bring in tens of billions of dollars in investments across defense and industrial sectors. The project is projected to create over 100,000 well-paying jobs in various fields such as welding, engineering, and research.
Germany’s bid includes a range of investments, such as constructing a maintenance facility on Canadian coasts and establishing manufacturing centers for torpedoes and anti-torpedo systems. The proposal also involves transforming Manitoba’s Port of Churchill into an export hub for Canadian LNG and critical minerals. The German government additionally suggested setting up a carbon capture facility in partnership with Alberta.
The bid’s alignment with Canada’s economic goals, including increasing LNG production, is a significant aspect of the deal. TKMS’s platform is designed for Arctic waters and NATO interoperability, enhancing cooperation with NATO forces and Europe. The agreement with Germany complements Canada’s existing partnerships and strategies, without detracting from the Indo-Pacific focus.
The submarine deal is anticipated to bring substantial economic benefits to Canadian coasts, particularly in shipbuilding and maintenance activities. Halifax and the West Coast are expected to witness significant economic activity resulting from the German and Norwegian contract, with benefits extending throughout Canada. Prime Minister Carney emphasized that this deal marks the beginning of long-term economic opportunities for Canada.