Canada has selected German shipbuilder ThyssenKrupp Marine Systems (TKMS) as the preferred supplier for its new patrol submarine program, in what Prime Minister Mark Carney described as the largest defense procurement in the country's history.
The agreement covers the construction of up to 12 conventionally powered submarines designed to strengthen Canada's naval capabilities and enhance security across the North Atlantic and Arctic regions.
The German company beat South Korea's Hanwha Ocean to secure the multi-billion-euro contract. Although Canadian officials did not disclose the project's total cost, German media reports estimate the submarines and related support services could be worth about €20 billion.
German Chancellor Friedrich Merz welcomed the decision, calling it a strong signal of European and transatlantic cooperation. He said the contract would boost Germany's defense industry while creating up to 1,500 jobs at TKMS shipyards in Kiel and Wismar.
German Defense Minister Boris Pistorius described the agreement as a milestone for NATO, saying Canada, Germany and Norway would jointly operate one of the world's largest and most advanced conventional submarine fleets to improve surveillance and security in the North Atlantic and Arctic.
Canada plans to commission the first of the new submarines by 2035, replacing its aging fleet and strengthening the Royal Canadian Navy's ability to protect the country's vast maritime territory.
The contract also reflects Canada's growing defense cooperation with European allies as NATO members continue to increase military spending in response to evolving global security challenges.
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