Canada Shortlists German, South Korean companies for large purchase of submarines

The Canadian government has announced the final contenders to provide the Royal Canadian Navy with up to 12 new diesel-electric submarines. Prime Minister Mark Carney made the announcement in Berlin during a meeting with German Chancellor Friedrich Merz.

Two companies have been nominated for the project, one from Germany and one from South Korea. The German company, Thyssen Krupp Marine Systems (TKMS), will be visited by Mr. Carney and his cabinet colleagues. The second company, Hanwha Ocean Co., Ltd. from South Korea, will be visited by Mr. Carney in October.

The selection process began in September 2024, with companies submitting assessments of their ability to supply the submarines. The government has determined that two consortia meet the demanding requirements of the Canadian Navy. The new submarines will be instrumental in Canada’s defense strategy, allowing the country to detect, track, and potentially engage opponents in all three of Canada’s oceans.

The chosen submarine, the TKMS 212 CD, is currently in development for the Norwegian and German navies. The decision to opt for diesel-electric submarines, rather than nuclear-powered ones, was made due to cost considerations. The Canadian Navy has indicated that 12 submarines are necessary for proper defense operations, with one submarine always in a state of high readiness.

The cost of the submarine purchase has not been disclosed, as negotiations with the selected supplier are ongoing. The economic benefits for Canada will also be taken into account during the negotiation process.

The selection of the submarine supplier is a significant step for the Canadian Navy and the country’s defense capabilities. With the final contenders announced, Canada is one step closer to acquiring the submarines needed to safeguard its coastal waters and national security.