Canada picks TKMS for major submarine program
Canada has selected Germany's ThyssenKrupp Marine Systems as its preferred supplier for a new fleet of submarines, in what is expected to become the largest defence procurement program in the country's history, reports a Qazinform News Agency correspondent.
Prime Minister Mark Carney announced in Halifax that Ottawa will now begin contract negotiations with TKMS. Canada plans to acquire 12 submarines to replace its aging Victoria-class fleet.
"This project is about much more than acquiring submarines. It builds Canadian industrial capacity," Carney said.
Prime Minister Carney announces the preferred supplier for the Canadian Patrol Submarine Project – the largest defence procurement in Canadian history.
— Prime Minister of Canada (@CanadianPM) July 6, 2026
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He added that the government was acting on its pledge to improve defence procurement.
"Today's announcement is another important step in that direction," he said.
The German-Norwegian bid was selected over South Korea's Hanwha Ocean. Carney said the decision was difficult, noting that both proposals met the Royal Canadian Navy's requirements.
"In the end, this decision was about choosing the absolute best platform and partnership to meet Canada's combined strategic, security and economic interests," he said.
TKMS CEO Oliver Burkhard called it an "important day" for Canada, Germany and Norway, saying the company is ready to deliver "a world-class submarine capability."
Ottawa hopes to conclude a contract by next year. If negotiations with TKMS fail, Canada may still turn to Hanwha as a reserve supplier.
The final cost has not been disclosed, but the submarine purchase could reportedly reach $24 billion, while lifetime maintenance and sustainment may push the total program value above $100 billion.
Touching on national security, Prime Minister Mark Carney said Canada’s next submarine fleet would strengthen the country’s defence capabilities while creating long-term industrial benefits.
“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.
Earlier, Qazinform News Agency reported that Canada had unveiled a new strategy to expand its nuclear energy sector, aiming to strengthen domestic power generation and enhance international cooperation.
