Canada chooses German submarines for navy fleet
Ottawa, July 7
Canadian Prime Minister Mark Carney on Tuesday announced that Canada has selected German manufacturer TKMS as the preferred supplier for its next fleet of submarines, describing the project as the largest defence procurement in the country's history.
In a post shared on X, Carney said the agreement would strengthen Canada's strategic capabilities while creating significant economic benefits for Canadian workers and industries.
"Canada is designating German manufacturer TKMS as the preferred supplier for our next fleet of submarines. This will be the largest defence procurement in our nation's history and it will have enormous, lasting benefits for Canadian industries and workers," Carney said.
He added that Canada would work closely with Germany and Norway on the project.
"Together with our German and Norwegian Allies, we will build at speed and scale to expand our strategic capabilities and defend our sovereignty. We will build this fleet to build Canada strong," Carney said.
The announcement was welcomed by German Chancellor Friedrich Merz, who described the procurement as a strong signal of transatlantic and European cooperation.
"This is a strong signal for our transatlantic and European partnership: Canada is procuring German-Norwegian 212CD-class submarines. Thank you for your trust, @MarkJCarney and @jonasgahrstore," he wrote on X.
Canada has selected German shipbuilder TKMS to build up to 12 submarines as part of its plan to replace its ageing fleet in what is expected to be the country's largest-ever defence procurement programme, Al Jazeera reported.
"In a more dangerous and divided world, Canada must be prepared to defend our interests, protect our citizens, build our economy, and secure our future," Canadian Prime Minister Mark Carney said on Monday ahead of his visit to Turkiye for the NATO leaders' summit, as reported by Al Jazeera.
"Together with our German and Norwegian Allies, we will build at speed and scale to expand our strategic capabilities and create greater strategic autonomy. We will build this fleet to build Canada strong," Carney said.
Carney did not reveal the financial value of the proposed deal.
TKMS, majority-owned by German industrial group Thyssenkrupp, submitted its bid jointly with Norway and was selected over South Korea's Hanwha Ocean after months of competition. Germany, Norway and Canada are all members of NATO, as reported by Al Jazeera.
Canada has said the contract is expected to be finalised by the end of next year, with the first four submarines scheduled for delivery by 2034.
Canada currently operates a fleet of four submarines.
According to Al Jazeera, Canada's The Globe and Mail estimated the submarine acquisition could cost between 20 billion and 30 billion Canadian dollars (USD 14 billion to USD 21 billion), while the total lifetime cost, including operations, maintenance and upgrades, could reach between 40 billion and 50 billion Canadian dollars (USD 28 billion to USD 35 billion).
Canada has faced continued pressure from US President Donald Trump to increase defence spending, similar to other NATO allies. The country has since achieved NATO's target of spending 2 per cent of its gross domestic product (GDP) on defence ahead of schedule.
NATO member states have also agreed to raise defence and security-related spending to 5 per cent of GDP by 2035. Shares of TKMS closed 11 per cent higher following the announcement, Al Jazeera reported.
— ANI
Reader Comments
Mark Carney is smart to diversify away from US dependence. We Indians know the value of strategic autonomy - look at how we balance between Russia and the West. Canada choosing German subs over American or Korean ones shows they're thinking long-term. The 2% GDP spending target is finally being taken seriously.
Wait, 40-50 billion Canadian dollars lifetime cost? That's crazy money for just 12 submarines! But I guess when your coastline is as long as Canada's, you need to protect it. Reminds me of our own naval modernization challenges - we need to upgrade our submarine fleet too. The INS Kalvari class is good, but we need more.
First delivery in 2034? That's 10 years from now! By then, technology would have changed completely. India should take note - our naval procurement cycles also take forever. The Project 75I submarine deal has been dragging for years. Canada's timeline isn't great either, but at least they made a decision.
The global arms race is heating up again. From a neutral perspective, I hope this doesn't escalate tensions unnecessarily. Canada isn't exactly facing a direct submarine threat from anyone. But I understand the need for NATO solidarity - especially with Trump putting pressure on allies. Germany getting this deal over South Korea is interesting geopolitics.
As someone who follows global defence markets, this is a huge win for TKMS. The 212CD class is a proven design, and collaboration with Norway makes sense. For India, this should be a lesson in public-private partnership. Our defence manufacturing still relies too much on government entities. We need more Make in
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