Canada selects German firm TKMS for 12-submarine procurement
Canada announced a multi-billion-dollar contract with German shipbuilder TKMS to build a fleet of 12 new submarines, part of a broader effort to modernise its navy and increase defence spending.
Canada has awarded a contract to German defence company TKMS to supply 12 new submarines, marking the largest military procurement in the country's history. Prime Minister Mark Carney made the announcement ahead of his departure for a NATO summit in Turkey, where allies are expected to discuss heightened defence investment.
The government says only one in four of Canada's current submarines is operational, prompting a push to replace the aging Victoria-class vessels acquired in 1998. Carney said the project will also expand Canadian industrial capacity and improve maritime sovereignty, particularly in the Arctic region.
"In a more dangerous and divided world, Canada must be prepared to defend our interests, protect our citizens, build our economy, and secure our future," Carney said.
Negotiations with TKMS are expected to take several months before a final contract is signed. The German firm, working with a Norwegian partner, highlighted that its bid offers a "low-risk, NATO-aligned, and economically transformative solution" that includes shared maintenance, training, logistics and operational support.
Analysts noted that the deal gives the prime minister credibility in his pledge to raise defence spending to 2% of GDP, with a target of 5% by 2035, and to strengthen strategic ties with Europe amid trade tensions with the United States. The new fleet is projected to keep three submarines operational at any time, a significant increase over the current capability.
