It's an arms deal worth billions: Canada is ordering up to twelve ultra-modern submarines from the German shipyard TKMS. Prime Minister Mark Carney confirmed the information to the Canadian newspaper “Globe and Mail“. According to it, TKMS won the tender, ahead of the South Korean shipyard Hanwha Ocean. The two companies fought for the order for months.
Canada wants to buy submarines of the type 212CD, which the Kiel-based subsidiary of Thyssenkrupp, which specializes in defense, also sells to the navies of Germany and Norway. The costs are estimated at over ten billion euros. The submarines are intended for operations in the Arctic and within NATO, Die Welt reports.
“This is a major strategic project. If it is implemented, it will connect us with Canada for decades to come“, said a government official in Berlin, emphasizing the transatlantic dimension of the arms deal. In recent weeks and months, Federal Chancellor Friedrich Merz has “put a lot of political effort“ into its implementation, the statement said.
Pistorius praises ultramodern submarines
The ultramodern Type 212CD submarines are extremely difficult to detect and, thanks to modern lithium-ion batteries, can operate autonomously and completely silently for weeks. There is nothing like it among conventional submarines, said German Defense Minister Boris Pistorius during a visit to Canada, where he promoted the German-made submarines. "Together we can build the largest and most modern fleet of conventional submarines in the world," he assured.
According to media reports, the negotiations have gone beyond the submarine deal in question: possible investment commitments in several areas were also discussed, including rare earth elements, mining, artificial intelligence and the production of batteries for the automotive sector.
TKMS CEO Oliver Burkhardt said the order was "the largest order for conventional submarines ever awarded to a NATO partner."
Transatlantic defense cooperation - and without the US
It's not just the manufacturer that will benefit from the lucrative contract - Germany will also reap huge foreign policy benefits. According to the government in Berlin, closer cooperation with Canada on strategic issues is also beneficial for the North Atlantic Treaty Organization (NATO), which is holding its annual summit in the Turkish capital Ankara today and tomorrow.
The defense alliance is undergoing a process of reorientation: the United States is reducing its military contribution, while Europe is stepping up its efforts and increasing its defense capabilities. The planned submarine deal strengthens cooperation between Canada, Germany and Norway - the third partner in this area - both in terms of the defense industry and the security of NATO's northern flank.
Among the NATO allies, the stated goal is to acquire more systems with the same design in order to be able to carry out closer military cooperation - for example, in the rapid exchange of data, in crew training or in maintenance.
So far, Germany and Norway have ordered six submarines of this type. With the award of the Canadian order, production volume has now doubled. TKMS shares have seen a rise, at times reaching eleven percent.
Author: Nina Werkheuser