Prime Minister Mark Carney announced on Monday that Canada has selected a German-Norwegian consortium led by Thyssenkrupp Marine Systems (TKMS) to build a fleet of 12 cutting-edge submarines. This multibillion-dollar contract, valued at tens of billions of dollars, represents one of the largest military procurements in the country's history. The new fleet will replace Canada's ageing secondhand submarines, many of which are currently undergoing maintenance.
The decision follows a tightly contested competition between TKMS and South Korean shipbuilder Hanwha Ocean. The selection is expected to further deepen Canada's ties with NATO as the country modernizes its naval capabilities.
The announcement was made just before Prime Minister Carney departs for a NATO leaders' summit in Turkey, scheduled for Tuesday and Wednesday. During the summit, Canada intends to announce around 10 founding nations for a global defense bank.
Canada has already reached NATO's military spending target of 2% of GDP, arriving at the goal earlier than originally planned following pressure from the United States. NATO leaders have further agreed to target defense and security-related investments of 5% of GDP by 2035.