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.
In a statement, TKMS said 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 needs 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 adapt to this 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 shifting its focus to Europe, a move reportedly influenced by the tariff crises and political tensions at the start of US President Donald Trump's second term.
After South Korea's Hanwha Ocean was eliminated, TKMS was chosen, with shared NATO membership and deep-rooted ties said to be decisive factors.
The project, to be carried out within an intergovernmental framework, involves 72-meter Type 212CD diesel-electric submarines equipped with advanced sensors capable of operating 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 to be between 20 and 30 billion Canadian dollars (14-21 billion US dollars), while the total project cost, including operation, 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.
