A German company has been given the contract to provide a fleet of 12 diesel electric submarines for the Royal Canadian Navy.
Prime Minister Mark Carney, while announcing ThyssenKrupp Marine Systems (TKMS) won the bid, said it is the biggest procurement in Canadian military history.
The first four vessels are expected to be delivered by 2034. Germany and Norway gave up their place in line so that Canada could get the submarines as soon as possible.
Carney made the announcement in Halifax shortly before leaving for a NATO summit in Türkiye. He said his government will now enter negotiations with TKMS to buy up to a dozen subs.
The subs, the prime minister added, will strengthen Canada’s defense industrial base, deepen partnerships with allies, offer new opportunities for Canadian businesses, and the purchases will have the greatest economic impact of any defence investment across Canada.
“These are amongst the most advanced submarines ever built. The fuel cell air independent propulsion system allows for more than forty days fully submerged in near total silence. Combined with purpose- built combat capabilities lithium-ion batteries for speed and rapid recharge and unparalleled endurance under the ice, the TKMS delivers exceptional strength, stealth and staying power,” Carney said. “The TKMS platform is optimised for Arctic waters. And it’s fully NATO interoperable."
The competition for the $100 billion deal was fierce between TKMS and South Korean firm Hanwha Ocean. Both competitors offered huge incentives as part of their bids, promising spin off benefits to Canadian businesses as well as hundreds of thousands of Canadian jobs.
Germany pledged more than $160 billion in economic activity in Canada and 650,000 jobs, including investment in the port of Churchill, manufacture of torpedoes in Canada, the purchase of liquified natural gas, and helping Canada to construct a space launch complex.
“This was a difficult and close decision between two highly qualified suppliers,” Carney said. “Both the TKMS and the Hanwha platforms met the capabilities, the very high capabilities of the Royal Canadian Navy. Both of them put forward strong proposals to maximize the benefits for Canadian workers and businesses.”
The new submarines are intended to replace the current fleet of four British-made Victoria class subs. They were bought second-hand from Britain in 1998 and have been plagued with maintenance issues. Only one of them is considered fully operational.
