Canada Selects German and South Korean Shipyards for Major Submarine Program

Key Takeaways

Prime Minister Mark Carney has shortlisted two firms for Canada’s new submarine fleet: thyssenKrupp Marine Systems and Hanwha Ocean.
Carney will visit Hanwha Ocean in South Korea during the APEC South Korea 2025 Summit, scheduled for late October.
The new submarines will replace the aging Victoria-class fleet, with delivery expected by 2035.

Submarine Bidder Selection and Future Plans

Canadian Prime Minister Mark Carney announced that the competition to provide Canada with a new submarine fleet has been narrowed down to two bidders: thyssenKrupp Marine Systems (TKMS) and Hanwha Ocean. He made this announcement during a press conference in Berlin on August 26, alongside German Chancellor Friedrich Merz. Following the announcement, Carney toured TKMS facilities in Kiel, Germany, and is set to visit Hanwha Ocean in South Korea later in October, coinciding with the APEC South Korea 2025 Summit from October 31 to November 1.

The Canadian government initiated its procurement process for a fleet of up to 12 new conventionally-powered submarines in September 2024. This effort comes as the Royal Canadian Navy prepares to decommission its current fleet of Victoria-class submarines, which are expected to retire in the mid-2030s. Analysts suggest the project could cost around CAD 60 billion (USD 44 billion), though no official budget has been released.

The new submarines will need to operate effectively in demanding environments, including Arctic regions under ice for weeks. Carney highlighted the capability of both companies, stating their products qualify for operating in these challenging conditions.

Public Services and Procurement Canada mentioned that in-depth engagements would occur with the two shortlisted firms to advance the procurement process, aiming to generate economic benefits for Canada’s marine and defense industry. TKMS is expected to propose the Type 212CD submarine, developed in collaboration with Norway, while Hanwha Ocean plans to offer its KSS-III, already in service with South Korea.

TKMS CEO Oliver Burkhard stated that their submarines are particularly suitable for Arctic operations. Meanwhile, Hanwha has indicated its ability to deliver four KSS-III submarines by 2035 if awarded the contract next year, with the remainder provided at a pace of one per year, resulting in complete delivery by 2043.

Royal Canadian Navy Commodore Jason Armstrong has confirmed that the first of the new fleet will be delivered by 2035, with initial operational capability expected in 2037. These submarines are designed for covert operations with a range of up to 3,500 nautical miles and a patrol duration of 21 days. Armed with heavy torpedoes, anti-ship cruise missiles, and precision-strike capabilities, the new submarines represent a significant modernization of Canada’s naval defense.

The Victoria-class submarines, originally known as Upholder-class, were purchased second-hand from the Royal Navy, with the first three entering service between 2000 and 2003. The fourth submarine faced delays due to a fire and only began service in 2015. Current upgrades aim to extend their operational lifespan until the late 2030s, avoiding any gaps in submarine capabilities as Canada transitions to its future fleet.

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