Canada’s Submarine Procurement: A Multibillion-Dollar Decision

Canada is on the cusp of making one of its largest-ever military procurements, with the country set to choose between German and South Korean bids to build a fleet of 12 submarines worth tens of billions of dollars.

The announcement is expected to be made on Monday, with Prime Minister Mark Carney scheduled to tour a Canadian Armed Forces base in the Atlantic-coast province of Nova Scotia before making the decision. Carney’s government has pledged to meet NATO’s higher defense spending targets, committing to spend 5% of Canada’s gross domestic product on defense by 2035 after reaching the alliance’s previous 2% benchmark this year.

The two companies competing for the contract are Germany’s ThyssenKrupp Marine Systems and South Korea’s Hanwha Ocean. ThyssenKrupp Marine Systems has pitched its submarines as strengthening NATO, noting that it has supplied much of the alliance’s conventional submarine fleet. Hanwha Ocean, on the other hand, has mounted an aggressive advertising campaign and highlighted economic benefits for Canada, including job creation and investment.

Both companies say their proposals would generate jobs and investment in Canada. ThyssenKrupp Marine Systems has emphasized the importance of its partnership with Norway, which has a long history of submarine manufacturing. Hanwha Ocean, meanwhile, has showcased its KSS-III diesel-electric submarine, which completed the South Korean navy’s first-ever trans-Pacific crossing last month.

The Canadian government’s decision will have significant implications for the country’s defense capabilities and its relationship with NATO. The current fleet of four Victoria class submarines is barely in operation, and a new fleet would be a significant upgrade. The announcement is also expected to be made before Carney departs for the NATO summit in Turkey, where NATO allies will be boosting defense spending.

Carney has said in the past that a decision would be announced within weeks, and the government has been tight-lipped about the exact date. However, sources close to the government have indicated that Monday is the likely day for the announcement.

The submarine procurement is one of the largest military contracts in Canadian history, and the decision will have significant implications for the country’s defense capabilities and its relationship with NATO.

Key Facts:

• Canada is set to choose between German and South Korean bids to build a fleet of 12 submarines worth tens of billions of dollars.
• The announcement is expected to be made on Monday.
• The two companies competing for the contract are Germany’s ThyssenKrupp Marine Systems and South Korea’s Hanwha Ocean.
• The Canadian government’s decision will have significant implications for the country’s defense capabilities and its relationship with NATO.