Canada has chosen Germany’s Thyssenkrupp Marine Systems (TKMS) as its preferred supplier for a new fleet of submarines, superseding a rival proposal from South Korea’s Hanwha Ocean.
The decision was confirmed by Prime Minister Mark Carney at Canadian Forces Base Halifax on 6 July, setting in motion a negotiation process for what is projected to be the largest defence procurement in Canadian history.
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Under the Canadian Patrol Submarine Project (CPSP), up to 12 new submarines, based on the 212CD model developed by TKMS, will be delivered to Royal Canadian Navy (RCN), replacing the current Victoria-class submarines.
The Government of Canada’s selection of TKMS follows a rigorous, multi-phase procurement effort to replace the Royal Canadian Navy’s (RCN) current Victoria-class submarines.
The two parties will now enter into exclusive negotiations, aiming to finalise all contractual arrangements for the CPSP by the end of 2027.
Carney said: “Together with our German and Norwegian Allies, we will build at speed and scale to expand our strategic capabilities and create greater strategic autonomy. We will build this fleet to build Canada strong.”
TKMS’ 212CD submarines are designed for ultra-low acoustic and magnetic signatures and are capable of Arctic patrols, undersea surveillance, special forces deployment, and full Nato interoperability.
Technical specifications for the 212CD class include a length of approximately 74 metres (m), a height of about 13m, non-magnetic steel double hull, and fuel cell air-independent propulsion with PERMASYN motor.
The combat system for the 212CD submarines is provided by Kongsberg. Through the kta Naval Systems joint venture, Kongsberg delivers major elements of the ORCCA combat system, which is currently being developed for the 212CD class.
According to TKMS, Type 212CD was developed from the outset in collaboration with an Arctic nation to operate in the Arctic, not as a modified design for northern conditions. It is also engineered to perform in the demanding North Atlantic and the warmer Pacific, reflecting the range of environments Canada may face.
The Canadian government’s plans call for the delivery of the first four submarines in 2034, ahead of earlier timelines, with the existing Victoria-class vessels remaining operational into the mid-to-late 2030s.
Canada’s procurement framework for this project falls under the Build-Partner-Buy approach outlined in the Defence Industrial Strategy, giving preference to collaborations with allied nations and domestic industry partners.
TKMS stated that project to generate total economic activity of C$167bn ($117bn), with direct economic impact estimated at over C$86bn. The partnership is also projected to create more than 650,000 job-years across Canada.
Canada’s Defence Investment Agency manages the initiative, and programme partners for the 212CD submarine now include Germany and Norway, in addition to Canada.
Thyssenkrupp CEO Miguel López said: “Canada’s decision in favour of Team 212CD is a tremendous success for TKMS – and a powerful validation of our strategy.
“We are convinced that this trilateral partnership between Canada, Germany and Norway will create lasting value – for TKMS, for our shareholders and for the transatlantic security architecture. thyssenkrupp stands firmly by TKMS’s side as the company takes this important step.”
Despite selecting TKMS as the preferred supplier, Canada has kept the door open for Hanwha Ocean.
A statement from the Prime Minister noted that if negotiations with TKMS do not result in a final contract, Canada may begin discussions with Hanwha Ocean, which had put forward the KSS-III diesel-electric submarine.
Hanwha Ocean offers to deliver four KSS-III submarines to replace the Victoria class fleet before 2035, should it secure the contract in 2026. It plans to deliver the remaining eight vessels at a rate of one per year, completing all 12 by 2043.
Earlier this year, Hanwha Ocean established a memorandum of understanding with Canadian steel supplier Algoma Steel in anticipation for the contract.
Last month, TKMS placed an order with Valbruna ASW for approximately 70 tonnes of non-magnetic steel required for submarine construction.
