Prime Minister Mark Carney has revealed that Canada is in talks to purchase potentially up to twelve submarines from German shipbuilder ThyssenKrupp Marine Systems (TKMS), signaling the conclusion of a rigorous competition to replace Canada’s aging Victoria-Class submarine fleet. The bids from South Korea’s Hanwha Ocean and the joint submission from Germany and Norway, alongside TKMS, included commitments beyond submarine procurement, emphasizing substantial investments in Canada’s economy.
TKMS proposed to supply four Type 212CD submarines to the Royal Canadian Navy by 2036, with the first expected by 2034. This aligns closely with Hanwha Ocean’s offer to deliver four submarines by 2035. The timing of the procurement is crucial as the current Victoria-Class submarines are scheduled for retirement in the mid-2030s, with only one operational presently.
Carney mentioned that the selection of TKMS for negotiations to potentially secure up to twelve submarines followed a challenging decision between two highly qualified suppliers, with both meeting the Royal Canadian Navy’s stringent requirements.
In terms of economic benefits, Carney emphasized that the deal requires TKMS to match 100% of the government’s investment value with economic advantages for Canada. The investment is anticipated to bring tens of billions of dollars into Canada’s defense and industrial sectors, including areas such as space, munitions, autonomous technology, critical minerals, and research and development.
The proposed investments by Germany include the establishment of a maintenance facility on one of Canada’s coasts, manufacturing centers for torpedoes and anti-torpedo systems, and the potential transformation of Manitoba’s Port of Churchill into a key export hub. Additionally, a carbon capture facility utilizing TKMS technology is proposed in partnership with Alberta.
The bid’s alignment with Canada’s economic goals, particularly the aim to increase LNG production to 50 million tonnes per year by 2030, was highlighted. Furthermore, the bid’s compatibility with NATO forces was emphasized, with TKMS already serving as a supplier for the alliance.
Carney underscored that while the German bid was chosen, Canada remains committed to its Indo-Pacific strategy, with Hanwha Ocean as the backup supplier should negotiations with TKMS falter. The announcement was made in Nova Scotia’s capital, with Carney indicating potential significant benefits for Halifax and the West Coast in shipbuilding and maintenance activities, promising long-term economic activity for these regions and beyond.