Canada has announced plans to purchase potentially up to twelve submarines from German shipbuilder ThyssenKrupp Marine Systems (TKMS), marking the conclusion of a competitive process to replace the aging fleet of Victoria-Class submarines. The bids from South Korea with Hanwha Ocean and Germany and Norway with TKMS included commitments beyond just submarine procurement, emphasizing investments in Canada’s economy.
TKMS proposed delivering 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 aimed to deliver four submarines by 2035. Given the retirement timeline of the current fleet of Victoria-Class submarines in the mid-2030s, the timing of the procurement is crucial.
Prime Minister Mark Carney highlighted that the decision to select the TKMS bid was challenging due to the high qualifications of both suppliers. The negotiations now move towards potentially acquiring up to twelve submarines.
The agreement with TKMS includes a stipulation that the value of the government’s investment must be matched by economic benefits to Canada. TKMS is expected to make substantial investments in various sectors, such as space, munitions, autonomous technology, and research and development, amounting to tens of billions of dollars.
The German offer aligns with Canada’s economic goals, including the increase in LNG production and job creation. Additionally, the proposal includes investments in creating manufacturing centers for torpedoes and anti-torpedo systems, as well as the potential transformation of Manitoba’s Port of Churchill into an LNG export hub.
The submarines from TKMS are designed to be compatible with NATO forces, enhancing communication and interoperability for joint missions. This deal further strengthens ties with Germany and NATO, reflecting Canada’s commitment to defense cooperation.
The economic impact of the TKMS contract is expected to create over 100,000 jobs and generate significant economic activity on both the East and West Coasts of Canada. Carney emphasized the long-term benefits that the submarine procurement will bring to various regions across the country.