Canada has chosen German ThyssenKrupp Marine Systems (TKMS) to build its new military submarine fleet. The first submarine is scheduled for delivery in 2033 under a partnership formed with Germany and Norway.
TKMS stated that this project is the largest single order in the company's history and is expected to increase its current order volume by more than 50 percent. TKMS CEO Oliver Burkhard said, "We are building a new transatlantic coalition founded on trust and shared values. The submarines, designed by Arctic nations for Arctic conditions, will fully meet the deterrence needed in the Arctic region."
Canadian Prime Minister Mark Carney, speaking in Halifax before departing for the NATO summit in Ankara, said the world has changed and Canada must keep pace with that change. "Canada must be able to defend itself," Carney said.
German Chancellor Friedrich Merz welcomed the decision, emphasizing that the project is a strategic step that will bind the three countries together for decades.
Canada, which currently sources 80 percent of its military equipment from the US, is turning to Europe, a shift influenced by the tariff crises and political tensions that erupted at the start of US President Donald Trump's second term.
After South Korea's Hanwha Ocean was eliminated, shared NATO membership and deep-rooted ties were decisive in the selection of TKMS.
Under the intergovernmental project, the 72-meter Type 212CD diesel-electric submarines are equipped with advanced sensors to operate in the harsh under-ice conditions of the Arctic. Production will take place entirely at the Kiel and Wismar shipyards in Germany, and the full fleet delivery will be completed by 2043.
The procurement and service cost of the submarines is estimated at between 20 and 30 billion Canadian dollars (14-21 billion US dollars), while the total project cost, including operations, maintenance and modernization, could reach 50 billion Canadian dollars (35 billion US dollars). The project is expected to generate 167 billion Canadian dollars (117 billion US dollars) for the Canadian economy over its lifetime and create 650,000 jobs.
