Canada selects Germany’s ThyssenKrupp to build new submarine fleet

ANKARA, Turkey — Canada has crowned Germany’s ThyssenKrupp Marine Systems (TKMS) as the preferred bidder to replace the Royal Canadian Navy’s four Victoria-class submarines with a fleet of “up to” a dozen Type 212CD submarines. 

The long-awaited decision was announced today by Canadian Prime Minister Mark Carney during a pit stop in Halifax, Nova Scotia, on his way to the NATO Summit in Ankara.

“The submarine is proven and capable, and is widely used by our allies,” he said. “The type we’re moving to purchase, the type 212CD … will operate seamlessly along our NATO partners.”

Carney declined to reveal the estimated cost of the program, citing ongoing negotiations, but said it would be the largest defense procurement in Canadian history. The Globe and Mail estimated the contract would likely be worth between $20 billion and $30 billion.

The announcement was the culmination of a lengthy tender process launched nearly a year ago under the Canadian Patrol Submarine Project (CPSP), which pitted the German offering against a proposal from South Korea’s Hanwha Ocean to sell KSS-III submarines. Carney praised both competitors and said Canada retains the right to switch to Hanwha should further negotiations with TKMS flounder.

The planned purchase will be groundbreaking for Canada’s naval capabilities, as the country has not acquired newly built submarines in over 60 years. Type 212CD submarines feature a diamond-shaped hull to reduce sonar signature while underway, and the vessel’s propulsion system combines diesel engines and hydrogen fuel cell-based air-independent technology, “ensuring the longest dives without surfacing,” according to TKMS.

While Carney previously outlined that the choice for the CPSP would hinge on the overall economic package proposed by the companies and long-term cooperation partnerships, another key requirement highlighted by naval officials was how fast each bidder could deliver the platforms, given the current state of the Canadian fleet. According to a report from CBC, only one of the four Victoria-class submarines, purchased from the United Kingdom in 1998, is operationally ready. 

As part of their respective marketing campaigns, TKSM said they could supply four new submarines to Ottawa by 2036, while the South Koreans proposed delivering four a year earlier. Today Carney said the Germany and Norway had offered to give up their spot in line for some TKMS subs so Canada could get its first four by 2034.

The high-dollar deal is timely. Only hours before the start of the NATO Summit in Turkey on Tuesday and Wednesday, Secretary General Mark Rutte emphasized in a pre-event press conference that allies should not show up empty-handed.

“Here in Ankara, I expect nations to present clear, concrete and credible plans to reach that 5 percent goal [of defense spending and military capabilities]. And the evidence we see so far is impressive,” Rutte said at the presser.

The Canadian Department of National Defense did not respond to a request for comment at press time.