Canada picks Germany’s TKMS for historic submarine buy, in nod to Europe

Canadian Prime Minister Mark Carney announced on July 6 that German shipbuilder TKMS has won the competition to build 12 new submarines for the Royal Canadian Navy, beating out South Korea's Hanwha Ocean. The project, which will replace the aging Victoria-class submarines, is expected to be the largest defense procurement in Canadian history, with the entire project potentially costing up to $70 billion ($100 billion Canadian) over the lifetime of the boats. Carney described the decision as "difficult, close" between two highly qualified suppliers, but stated that choosing TKMS was about selecting the "absolute best platform and partnership." TKMS will offer Canada its Type 212CD submarine, which is also being built for Germany and Norway. Negotiations are set to begin shortly, with a contract expected by the end of the year. The first submarine is expected to be delivered in 2033, with three more following in 2034. Carney highlighted that the deal will strengthen Canada's defense industrial base, deepen partnerships with trusted allies, and open opportunities for Canadian businesses in European supply chains. Hanwha Canada's CEO expressed disappointment but noted the competition demonstrated the potential of the South Korean defense industrial base.