TORONTO — Canada is poised to announce its decision on Monday between German and South Korean bids to construct a fleet of 12 submarines, one of the nation’s largest defense acquisitions.
Germany’s ThyssenKrupp Marine Systems and South Korea’s Hanwha Ocean are vying for the contract to build 12 conventionally powered submarines valued at tens of billions of dollars.
The announcement is anticipated before Prime Minister Mark Carney heads to the NATO summit in Turkey, amid a broader increase in defense spending among NATO allies.
Carney plans to visit a Canadian Armed Forces base in Nova Scotia on Monday prior to unveiling ‘new measures aimed at making Canada more secure, resilient, and prosperous.’
A Carney spokesperson declined to confirm that the submarine decision will be announced on Monday, although Carney indicated in May that a decision would come within weeks.
Canada’s existing fleet of four Victoria‑class submarines is barely operational.
The German‑Norwegian consortium ThyssenKrupp Marine Systems argues that its submarines would bolster NATO, citing its extensive supply of conventional submarines to the alliance.
South Korea’s Hanwha Ocean has launched an aggressive advertising campaign, emphasizing the economic advantages its proposal would bring to Canada.
Last month, Hanwha displayed its KSS‑III diesel‑electric submarine in British Columbia following the vessel’s completion of the South Korean navy’s first trans‑Pacific crossing.
Both firms contend that their proposals would create jobs and spur investment in Canada.
Carney’s government has pledged to meet NATO’s elevated defense‑spending goals, committing to allocate 5% of Canada’s GDP to defense by 2035 after achieving the alliance’s previous 2% target this year.