Canada selects German-led bid for up to 12 submarines
Canada plans to buy up to 12 submarines from Germany’s TKMS as it moves to replace an aging fleet and expand naval capacity.
By James Whitfield · Staff Writer
2 min read
Canada said it wants Germany’s TKMS to build up to 12 submarines, a project the government described as the largest defence procurement in the country’s history. The planned fleet would replace Canada’s aging submarines and expand its underwater capabilities as NATO members raise military spending.
Prime Minister Mark Carney announced the decision on Monday before a planned trip to Turkiye for a NATO leaders summit, according to Al Jazeera. Carney said Canada had to be ready to defend its interests and citizens in what he called a “more dangerous and divided world.”
Carney said Canada would work with German and Norwegian allies to expand strategic capabilities and increase strategic autonomy, according to Al Jazeera. He did not disclose the value of the planned contract.
German-Norwegian bid beats South Korean rival
TKMS, which is majority-owned by German industrial group Thyssenkrupp, submitted its bid jointly with Norway, according to Al Jazeera. The German-Norwegian proposal beat a competing offer from South Korea’s Hanwha Ocean after months of competition between the bidders.
Canada, Germany and Norway are all NATO members. The selection ties Canada’s submarine replacement plan to allied defence industries at a time when the alliance is pressing members to increase military capacity and spending.
Canada has said the contract will be completed by the end of next year at the latest, according to Al Jazeera. The first four submarines are expected to be delivered by 2034.
Reuters reported that TKMS’s chief executive wants the contract completed by the end of this year. Canada currently has four submarines, according to Al Jazeera.
Cost estimates run into tens of billions
Carney did not put a price on the purchase. The Globe and Mail estimated the submarines themselves could cost 20 billion to 30 billion Canadian dollars, or about $14 billion to $21 billion, according to Al Jazeera.
The Globe and Mail also estimated that operations, maintenance and upgrades could lift the total to 40 billion to 50 billion Canadian dollars, or about $28 billion to $35 billion, according to Al Jazeera.
The decision comes as Canada faces pressure from United States President Donald Trump to raise defence spending, a demand also aimed at other NATO allies, according to Al Jazeera. Canada has reached NATO’s target of spending 2 percent of gross domestic product on the military earlier than it had originally planned.
NATO countries have agreed to lift defence and security-related investment to 5 percent of GDP by 2035, according to Al Jazeera. TKMS shares closed up 11 percent after Canada’s announcement.
This story draws on original reporting from Al Jazeera.