BERLIN — Canada has narrowed down its shopping list for its next fleet of submarines to those made by two suppliers, Germany’s Thyssen Krupp Marine Systems and South Korea’s Hanwha Ocean Co.
Ottawa plans to replace the Royal Canadian Navy's current fleet of four Victoria-class submarines over the next decade with up to 12 new subs, and this move will speed the massive procurement project along.
Prime Minister Mark Carney announced at a news conference with Chancellor Friedrich Merz on Tuesday morning in Berlin that Hanwha and TKMS are the two best qualified suppliers for the job.
"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.
"We need to be able to have year-round fleets on all three coasts under quite demanding conditions, so that's how the field narrows quite quickly."
Later in the day, TKMS gave Carney a tour of its shipyard in Kiel, with Industry Minister Mélanie Joly and Defence Minister David McGuinty in tow.
Carney said he plans to make a similar trip to visit Hanwha's facilities in South Korea in October.
On the TKMS tour, CEO Oliver Burkhard touted that their subs are purpose-built for Arctic and under-ice needs, and described them as “quieter than Canadian snowfall, but tougher than a player in a Stanley Cup final.”
A company slide show presentation showed a delivery timeline with a first sub ready for Canada in 2034, then a second in 2036 and a third in 2037.
Time is one of the key factors in Ottawa's decision making on the purchase since it's racing against the clock to replace its current fleet.
Public Services and Procurement Canada said it's aiming to have the first submarine delivered by 2035, when it will need to start decommissioning its current subs.
Ottawa bought its problem-plagued Victoria subs second-hand from the U.K. in 1998. Currently, only one is seaworthy.
Royal Canadian Navy Commander Vice-Admiral Angus Topshee said in a recent CTV interview that if Ottawa moves aggressively on the procurement, it could potentially decide on a supplier by end of year.
A Canadian government official who briefed reporters said Canada is looking for an economic return from the company it chooses for the submarines, potentially in the form of maintenance contracts.
Officials did not disclose a ballpark amount of money that Ottawa is looking at spending, since it will eventually enter into negotiations.
The federal government has also been embarrassed by such past estimates. Cost projections for the F-35 stealth fighter jets notably ballooned to $27.7 billion, according to a recent Auditor General report published in June — up from $19 billion just a few years ago.
Ottawa will next need to decide whether it puts out a request for proposal, or launches straight into negotiations.
The announcement comes as Carney ramps up Canada’s defence spending plans over the coming years in a bid to meet its NATO spending targets.
— With files from Kyle Duggan in Ottawa
This report by The Canadian Press was first published Aug. 26, 2025.
Craig Lord, The Canadian Press
