Canada Narrows Submarine Bid to Hanwha and TKMS

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  • Carney stresses Arctic and Pacific operational demands.
  • TKMS highlights Arctic-ready subs during Kiel shipyard tour.
  • Hanwha facility visit planned for October.

Canada has narrowed down its options for the next fleet of submarines to two strong contenders: Germany’s Thyssen Krupp Marine Systems (TKMS) and South Korea’s Hanwha Ocean Co. This decision is a significant step in Ottawa’s initiative to replace the Royal Canadian Navy’s four ageing Victoria-class submarines with as many as 12 new vessels over the next ten years, reports Yahoo Finance.

Carney Highlights Harsh Operational Demands

During a recent press conference in Berlin, Prime Minister Mark Carney, alongside German Chancellor Friedrich Merz, emphasised that both finalists are distinguished by their impressive technical capabilities.

“There’s a clear difference in their ability, the two finalists, to meet those technical requirements, which are very demanding because in Canada, submarine means weeks under the sea ice, as well as in the Pacific,” Carney said. He emphasised Canada’s need for a fleet capable of operating year-round on all three coasts.

TKMS Promotes Arctic Capabilities

Later in the day, Carney toured TKMS’s Kiel shipyard with Industry Minister Mélanie Joly and Defence Minister David McGuinty. TKMS CEO Oliver Burkhard underscored the company’s Arctic-ready designs. Burkhard described their subs as “quieter than Canadian snowfall, but tougher than a player in a Stanley Cup final.” A recent company presentation laid out a timeline that includes the delivery of the first submarine in 2034, with additional units expected in 2036 and 2037.

Canada Sets Delivery Target for 2035

In Ottawa, there’s a new goal on the table: Public Services and Procurement Canada is aiming to receive the first submarine by 2035, coinciding with the anticipated decommissioning of the Victoria-class submarines. The current fleet has faced ongoing reliability challenges since being purchased second-hand from the U.K. back in 1998, and right now, only one submarine is still fit for the sea.

Procurement Decisions Ahead

Royal Canadian Navy Commander Vice-Admiral Angus Topshee recently shared with CTV that if Ottawa acts swiftly, a decision on a supplier could be made by the end of the year. A government official mentioned that Ottawa is looking for economic benefits from the winning bidder, possibly through maintenance contracts, although no specific spending figures have been revealed. Cost estimates for military procurements are often a sensitive topic. For instance, the F-35 fighter jet program’s costs soared to $27.7 billion, up from earlier projections of $19 billion, as highlighted in a June report from the Auditor General.

Next Steps in the Submarine Program

The government now faces a choice: should it issue a request for proposals or start direct negotiations with one of the shortlisted suppliers? Carney has also confirmed plans to visit Hanwha’s facilities in South Korea this October before moving toward a final decision.

Defence Spending Tied to NATO Goals

This announcement comes as Carney ramps up Canada’s defence commitments to align with NATO spending targets, making the submarine replacement a crucial test of the country’s long-term military investment.

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Source: Yahoo Finance