Canada Awards German Firm Multi-Billion Euro Submarine Contract

Canada has awarded German shipbuilder ThyssenKrupp Marine Systems (TKMS) a significant contract to supply up to a dozen submarines, a deal Canadian Prime Minister Mark Carney described as the largest in Canadian history. The multi-billion-euro agreement aims to bolster Canada's defense capabilities and support its allies.

“

As part of our commitments to defend Canada and support our allies, I am pleased to announce that Canada has selected TKMS as the preferred supplier for Canada’s Patrol Submarine Project.

TKMS, which beat out South Korean competitor Hanwha Ocean, will supply its 212CD submarine model. Developed for the German and Norwegian navies, the vessel is noted for its stealth, long range, and flexible weapons payloads. Canada plans to have the first submarines operational by 2035.

“

the deal was a strong signal for Germany's European and transatlantic partnership, and thanked Carney for his "trust."

The contract is seen as a major boost for Germany's defense industry, with Chancellor Friedrich Merz emphasizing its role in strengthening transatlantic partnerships. German Defense Minister Boris Pistorius highlighted the deal as a milestone for security, stating it would become a key pillar in NATO's strategy for the North Atlantic and Arctic. He also noted the future three-nation submarine fleet, including Canada, Germany, and Norway, as a visible contribution to burden-sharing within the alliance.

“

the deal represented a milestone for transatlantic security, and would become a key pillar in NATO's strategy in the North Atlantic and Arctic.

The submarines and related support are expected to cost around €20 billion ($22.8 billion), according to German news agency DPA. The manufacturing will take place at TKMS shipyards in Kiel and Wismar, northern Germany, where the company anticipates creating up to 1,500 jobs. This strategic acquisition is intended to enhance the Royal Canadian Navy's capabilities and ensure Canada's security.

“

Together, we will build the world's largest and most modern conventional submarine fleet. We will be able to quickly share, analyze, and utilize the information that our 24 submarines will gather in the North Atlantic, the Arctic, and the High North.