Speaking in Halifax on Monday, Prime Minister Mark Carney revealed that Germany’s TKMS has been selected as the federal government’s preferred supplier to build up to 12 new state-of-the-art submarines. Carney said TKMS will reallocate boats from German and Norwegian orders to ensure the 2034 delivery date is met, News.Az reports, citing CTV news.
***
“These subs will strengthen our defence industrial base, they will deepen our partnerships with trusted allies, and they will open new opportunities for Canadian businesses in European supply chains,” Carney said from Halifax.
One of Canada’s largest military procurements, the 12 vessels are meant to replace Canada’s current fleet of four British-made Victoria-class submarines, which have been plagued with issues since they were purchased in 1998. Only one of the four submarines is considered fully operational.
TKMS is pledging $160 billion in economic activity in Canada, $86 billion in GDP and more than 650,000 jobs over the entire project. The German-Norwegian consortium has not provided a time frame for its calculations, but the lifespan of one submarine can range between 30 and 50 years.
Along with procuring the submarines, Canada’s project involves paying for 30 to 50 years of maintenance. The contract, over its entire lifespan, has an estimated value of more than $100 billion. According to industry sources cited by Reuters, the submarine order itself is estimated to be worth more than US$12 billion.
TKMS, also known as ThyssenKrupp Marine System, is currently the world’s largest manufacturer of non-nuclear submarines and supplies approximately 70 per cent of NATO’s fleet. The bid for the Canadian submarines was made in partnership with Norway, another NATO member.
