Canada picks Germany’s TKMS for 12 submarines

Agencies TORONTO

Canada has selected German consortium ThyssenKrupp Marine Systems (TKMS) to build 12 cutting-edge submarines under one of the country's largest-ever defence procurements. On Monday, Prime Minister Mark Carney announced the conclusion of a highly competitive bidding war, with the German firm defeating South Korean shipbuilder Hanwha Ocean for the multibillion-dollar contract.

The initiative aims to completely replace the Royal Canadian Navy’s ageing fleet of four Victoria-class vessels, three of which are currently docked for maintenance. The core submarine order is valued at more than $12 billion, but when factoring in half a century of scheduled upkeep and logistical operations, the final cost could surpass $70 billion.  These new non-nuclear stealth vessels are specifically optimised to navigate the contested waters of the Arctic, ensuring continuous maritime surveillance along critical pathways such as the Northwest Passage.

The acquisition reflects Canada's broader geopolitical push to deepen its institutional ties within NATO. Carney’s administration has committed to an aggressive military spending roadmap, pledging to allocate 5% of gross domestic product to defence by 2035.