Canada Selects TKMS for Historic 12-Submarine Fleet Procurement

Prime Minister Mark Carney announced on July 6, 2026, that Germany's Thyssenkrupp Marine Systems (TKMS) is the preferred supplier for the Canadian Patrol Submarine Project. This acquisition, described as the largest defense procurement in Canadian history, involves purchasing up to 12 Type 212CD diesel-electric submarines to replace the aging Victoria-class fleet. The project's purchase cost is estimated between 20 billion and 30 billion Canadian dollars, with total lifetime costs potentially exceeding 100 billion dollars.

Carney selected the German-Norwegian platform over a bid from South Korea's Hanwha Ocean, citing the TKMS design's optimization for Arctic waters and full NATO interoperability. These factors allow for integrated training, shared maintenance parts, and crew pooling. While Hanwha Ocean offered a fully operational KSS-III model with a shorter delivery timeline, it was designated as the reserve supplier. Following the announcement, Hanwha Ocean's shares dropped 22.65% on the KOSPI.

Canada expects the first four submarines by 2034, as Germany and Norway will reallocate production slots to accelerate delivery. This strategic move aligns with Canada's goal to increase defense spending to 5% of GDP by 2035. During a subsequent NATO summit in Ankara, Carney held a trilateral meeting with German Chancellor Friedrich Merz and Norwegian Prime Minister Jonas Gahr Støre to celebrate the deal, while also meeting with South Korean President Lee Jae Myung to maintain diplomatic relations and discuss artificial intelligence cooperation.