Canada Selects TKMS for Ongoing Defence Procurement

Canada has selected German defence organisation ThyssenKrupp Marine Systems (TKMS) for a procurement agreement to build the country’s 12-vessel submarine fleet.

TKMS will support a sovereign Canadian sustainment enterprise, facilitate workforce development and skills transfer, fortify domestic supply chains, and generate opportunities for Canadian businesses to engage in a wider international defence ecosystem.

Canada’s new procurement agreement

Canada says the new contract will allow the new fleet of TKMS submarines to replace Canada’s current Victoria-class fleet and scale up defence investments in order to modernise military procurement. The government has elevated defence expenditure to 2% of GDP, with a goal of reaching 5% by 2035.

The agreement follows growing concerns over the condition of Canada's existing submarine fleet, with only a fraction of the current vessels available for operations.

To address this, the new procurement programme is intended to enhance naval capabilities and support the long-term resilience of the defence supply chain.

The acquisition forms part of Canada's wider investment in modernising naval capabilities and strengthening long-term defence resilience. Prime Minister, Mark Carney, emphasised the necessity of ensuring Canada's strategic readiness.

"In a more dangerous and divided world, Canada must be prepared to defend our interests, protect our citizens, build our economy, and secure our future.

"To that end, we are making the largest defence procurement in our nation’s history with speed, ambition and discipline. Canada’s next submarine fleet will secure our coastlines and waters, and their construction will have enormous, lasting benefits for Canadian industries and workers.

"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 was selected over South Korea's Hanwha Ocean shipbuilding company following a competitive bidding process.

The company is also responsible for supplying submarines to Germany and Norway.

Oliver Burkhard, CEO of TKMS, explains the streamlined procurement deal: “This is an important day - for Canada, Germany and Norway.”

“With the CPSP, we are proud to take on the largest single order in the history of TKMS – and with it comes a clear promise: we will deliver. The CPSP is more than a procurement programme; it is the foundation of a long-term strategic partnership between trusted allies.

"Together with Canada, we are taking the next step as NATO partners – built on trust, shared values and a common commitment to defence. We stand ready to work alongside the Government of Canada, Canadian industry and our partners in Germany and Norway to deliver a world-class submarine capability that will strengthen security, create economic opportunity and generate lasting benefits for future generations.

"Last year our independence marked the beginning of a new era for TKMS. The CPSP is the next chapter of that journey. Canada will benefit from the full force of the current unique European program – the combined strength of Germany and Norway, united in purpose, and committed to delivering the very best and to create a new kind of transatlantic coalition.”

Canada’s defence procurement strategy 

The submarine programme follows Canada's ongoing efforts to modernise its defence procurement strategy. Earlier this year, the government also confirmed plans to acquire Saab's GlobalEye airborne surveillance aircraft as part of a wider investment in military capability.

“The first job of the government is to keep Canadians safe. Our government is protecting Canadians and supporting our Allies with an approach that transforms defence procurement,” Mr Carney explains. 

“With our new strategy, we are building our economy and creating careers in the skilled trades, science, and engineering. The GlobalEye procurement will help us secure our North and build our economy at once.”