Canada has selected Germany’s ThyssenKrupp Marine Systems (TKMS) as the preferred supplier for a fleet of up to 12 submarines, beating a rival offer from South Korea, in what Prime Minister Mark Carney said would be the country’s largest-ever procurement.

“I’m pleased to announce that Canada has selected TKMS as the preferred supplier for Canada’s patrol submarine project,” Carney said in Halifax on Monday.

The announcement comes on the eve of the NATO summit in Ankara, Turkey, where allies are expected to present plans to meet a target of spending 3.5% of GDP on defence by 2035.

TKMS developed the Type 212CD diesel-electric submarine together with Norway. The design, which has been ordered by Germany and Norway, went up against a bid from South Korea’s Hanwha Ocean.

German Chancellor Friedrich Merz welcomed the decision, calling it “a strong signal of transatlantic and European cooperation in the defence industry” ahead of the NATO summit.

The deal has been estimated at around €14.7 billion, with lifetime maintenance and upgrade costs potentially exceeding €60 billion.

“I can confirm that this procurement will be the largest in Canadian history,” Carney said.

Germany and South Korea both lobbied Ottawa hard in recent months. German Defence Minister Boris Pistorius visited the Canadian capital twice since October, arguing that the German proposal would deepen Canada’s integration with NATO.

Germany has ordered six Type 212CD submarines, as has Norway. If Canada proceeds with the purchase, the alliance would ultimately operate 24 submarines of the same class.

The German and Norwegian governments have agreed to defer construction slots to allow Canada to receive its first four submarines by 2034.

Ottawa has long sought to replace its four Victoria-class submarines, which were built in the 1980s and 1990s and first used by the UK, and are due to retire by 2035. Only one is currently operational, according to Carney.

The decision follows Poland’s recent choice of a Swedish Saab offer over the German bid. Greece is also considering the Type 212CD from TKMS, alongside a competing French proposal.

(cz)