Canada selects German TKMS for historic $70B submarine fleet
Prime Minister Mark Carney announced on July 6 that Germany's ThyssenKrupp Marine Systems (TKMS) has been selected as the preferred supplier for Canada's next fleet of up to 12 submarines, the largest defence procurement in Canadian history, with first deliveries expected by 2034.
A historic defence decision
On July 6, 2026, the Government of Canada announced that Thyssenkrupp Marine Systems (TKMS) has been selected as the preferred supplier to begin negotiations for delivering Canada's next fleet of submarines. Prime Minister Mark Carney announced the federal government has picked German firm TKMS to supply 12 new submarines to replace Canada's aging fleet.
The frontrunners for Canada's new submarine contract were TKMS and South Korean firm Hanwha Oceans. South Korea's Hanwha Oceans has been designated as the reserve supplier and will be allocated as the preferred supplier if negotiations with TKMS fail. "This was a difficult, close decision between two highly qualified suppliers," Carney said.
What the deal means
With ultra-low acoustic and magnetic signatures, TKMS' 212CD is one of the stealthiest submarines in the world. It is capable of Arctic patrol, undersea surveillance, special forces deployment, and it is fully NATO-interoperable. The current fleet is aging, with only one of four submarines seaworthy.
Canada will conclude contracting no later than the end of 2027, with the first four submarines to be delivered ahead of schedule, in 2034, ahead of the planned retirement of the Victoria-class fleet in the mid-to-late 2030s. TKMS said the partnership will generate $167 billion in total economic activity in Canada, deliver over $86 billion in economic impact and more than 650,000 job years over the entire lifespan of the project.
For foreigners settling in Canada: This multi-billion-dollar programme will create long-term employment opportunities across defence manufacturing and supply chains over the next decade and beyond, particularly in coastal regions and major industrial centres. If you work in engineering, manufacturing, or defence-related sectors, this procurement signals sustained investment and job security in those industries.
Sources
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