Canada chooses ThyssenKrupp for its largest military acquisition
Canada selected the German company ThyssenKrupp Marine Systems (TKMS) as a preferred supplier for the construction of up to 12 submarines. Prime Minister Mark Carney called the operation the largest military acquisition in the country’s history.
The announcement comes days before Carney attends a NATO summit, where allies face pressure to increase their defense spending. The president affirmed that the TKMS platform is optimal for Arctic waters and for the alliance.
“The submarine is proven and capable,” declared Carney.
TKMS supplies submarines to more than a third of NATO members. Carney declined to reveal the exact price, but said it will involve an investment of “tens of billions of dollars.”
German Chancellor Friedrich Merz thanked Carney and stressed:
“This is a strong signal for our transatlantic and European alliance.”
The German company beat the South Korean Hanwha Ocean. ThyssenKrupp said its submarines will strengthen interoperability, as many NATO allies already operate conventionally powered vessels.
Canada has committed to increasing its military spending after years of lagging behind NATO goals. Carney promised to raise defense spending to 5% of GDP by 2035, after reaching 2% of GDP this year, the alliance’s previous goal. The Canadian fiscal plan foresees spending reaching 4% of GDP by 2030.
Germany and Norway, countries that design the submarines together, will open production spaces to speed up deliveries. Canada would receive four submarines by 2034, two years earlier than projected. The new fleet will replace the four Victoria-class submarines, purchased second-hand from the United Kingdom in the late 1990s.
No American company submitted a bid, as the United States only builds nuclear-powered submarines, while Canada was looking for conventional vessels.
“The sovereignty of our country, bounded by three oceans and the longest coastline in the world, depends on our maritime capabilities,” concluded Carney.
