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Canada has selected the German consortium ThyssenKrupp Marine Systems (TKMS) to build 12 modern submarines, in one of the largest military contracts in the country's history.
Prime Minister Mark Carney announced Monday the winner of the multi-billion dollar contract to replace the Royal Canadian Navy's aging submarine fleet. Canada currently has four Victoria-class submarines, purchased second-hand from Britain in 1998, three of which are in maintenance.
Competing for the contract were the German company TKMS and the South Korean manufacturer Hanwha Ocean, who offered modern models with advanced technology and promised economic investments in Canada.
TKMS, the world's largest manufacturer of non-nuclear submarines and one of the main suppliers to the NATO fleet, won with the 212CD model, which was considered by Canadian authorities to be suitable for the country's military needs.
This is the first time Canada has purchased new submarines rather than second-hand ones.
The new submarines will be used primarily to bolster Canada's military presence in the Arctic. They are designed with modern stealth technology, allowing them to operate under difficult-to-detect conditions and conduct long-range surveillance missions in strategic areas, including the Northwest Passage.
The cost of building the 12 submarines is estimated at over $12 billion, while the contract also includes about 50 years of maintenance. This means that the total cost of the project could exceed $70 billion.
However, the Canadian government and TKMS must still negotiate the final details of the agreement, a process that could take several years.
Mark Carney visited the TKMS shipyard in Kiel, Germany, last year, and also inspected the submarine provided by Hanwha Ocean during a visit to South Korea.
During the selection process, Germany emphasized that its offer was fully compliant with NATO standards and presented cooperation opportunities in areas such as rare minerals, artificial intelligence, and battery production.
On the other hand, Hanwha promised to use Canadian steel for the production of military armored vehicles and conducted an extensive promotional campaign in Canada to support its offer.
Mark Carney's Liberal government has promised significant increases in defense spending, with a goal of reaching 5% of GDP by 2035. Canada recently announced that it has met NATO's previous target of 2% of GDP.
At the same time, Ottawa is seeking to diversify its military suppliers and reduce its dependence on the United States. In addition to the American F-35 jets, Canada is also considering buying 72 Gripen fighter jets, manufactured by the Swedish company Saab.
NATO Secretary General Mark Rutte said that Alliance member countries are expected to announce billions of dollars in new military contracts, describing them as "essential capabilities needed for deterrence and protection."
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