Canada picks Germany’s TKMS over South Korea’s Hanwha to build submarine fleet

[Ben Dhyani]

Canada picks Germany’s TKMS over South Korea’s Hanwha to build submarine fleet

Carney’s announcement brings an end to the 10-month, closely fought campaign between two companies

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Canada picks Germany’s TKMS over South Korea’s Hanwha to build submarine fleet​

The Canadian government has picked Germany’s TKMS to build this country’s first significant submarine fleet, siding with NATO allies and Europe over Asian defence contractor Hanwha. Mr. Carney, who unveiled the news before flying to a NATO leaders’ summit in Turkey, said the sub purchase will be the largest defence procurement in Canadian history.

“These subs will strengthen our defence industrial base, deepen our partnerships with trusted allies, and open new opportunities for Canadian businesses in European supply chains,” the Prime Minister said. He said the TKMS boats will be fully interoperable with NATO partners, noting the German manufacturer provides submarines to more than one-third of the NATO alliance “and is the leading submarine provider to navies around the world.”

The procurement is ultimately expected to be worth $20-billion to $30-billion for the subs themselves, and as much as $40-billion to $50-billion for operations, maintenance and upgrades.