German company TKMS selected to build Canada’s new military submarines

A German company has been selected to build Canada’s new submarine fleet, the country’s Prime Minister Mark Carney announced Monday.

ThyssenKrupp Marine Systems (TKMS) beat out a South Korean bidder for the contract, which is estimated to be worth CAN$20 billion to CAN$30 billion ($14 billion to $21 billion).

The deal for 12 submarines could rise to as much as CAN$50 billion when operations, maintenance and upgrades are included. The Canadian military currently has four aging submarines.

Announcing the decision in Halifax, Nova Scotia, Carney said Ottawa needed to adapt to a changing security environment.

“Canada must be able to defend itself,” he said. “The world is changing and Canada must change with it.”

The first submarine is expected to arrive between 2032 and 2035, with full delivery scheduled by 2043.

The announcement names the winning bidder, but a final contract has not yet been signed, a standard step in major defense procurements.

The purchase marks a major expansion of Canada’s defense spending and would give the Royal Canadian Navy its first newly built submarines in decades. Its current four submarines were bought second-hand.

The new diesel-electric submarines are expected to strengthen Canada’s ability to detect foreign activity in its Arctic, Pacific and Atlantic waters.

Germany’s long-standing ties with Canada, including their shared NATO membership, are believed to have helped TKMS secure the contract. South Korea is not a NATO member.