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Canada has selected Germany’s Thyssenkrupp Marine Systems as the preferred supplier to build its new multi-billion-dollar submarine fleet, Prime Minister Mark Carney announced Monday.
The government will now enter into exclusive 18-month negotiations with the German company to procure up to 12 new submarines to replace the ageing British-built Victoria-class fleet, which is scheduled for decommissioning within the next decade.
Carney declined to share specific financial details but noted that the massive deal will pump tens of billions of dollars into the Canadian economy.
Carney delivered the announcement in Halifax before departing for a crucial NATO summit in Türkiye.
The decision highlights Canada’s strategic effort to deepen defence ties with European NATO allies and show US President Donald Trump that the country is honouring its military spending promises.
While South Korea’s Hanwha Ocean Co. aggressively lobbied for the contract with lucrative industrial incentives, defence experts note that Germany’s status as a major NATO submarine provider ultimately gave it the winning edge.
The decision strengthens transatlantic cooperation, earning quick praise from German Chancellor Friedrich Merz.
However, the choice could complicate Canada’s diplomatic relations in the Indo-Pacific region.
Carney faces a potentially tense encounter at the summit in Türkiye, where South Korean President Lee Jae-myung will also be in attendance.
