Announcement

Prime Minister Mark Carney announced at CFB Halifax that Thyssenkrupp Marine Systems (TKMS) has been selected as the preferred supplier for the Canadian Patrol Submarine Project (CPSP). The Government of Canada will now enter negotiations with TKMS to finalize contracts for the program, which could deliver up to 12 conventionally powered Type 212CD submarines to the Royal Canadian Navy.

Canada aims to conclude contracting by the end of 2027. The government said the first four submarines are expected ahead of the original schedule, in 2034.

If negotiations with TKMS are not successful, the government said it may designate Hanwha Ocean, the other qualified supplier in the competition, as preferred supplier and enter negotiations with that company instead.

Why It Matters

The RCN's current Victoria class fleet is aging, with only one of four boats seaworthy. The CPSP is intended to replace that fleet with a platform shared by NATO allies Germany and Norway, supporting Arctic patrol, undersea surveillance and special forces deployment.

Process

The government said the selection followed a multi stage procurement:

The CPSP is being advanced by the Defence Investment Agency and aligns with Canada's Defence Industrial Strategy. The project will also be subject to Canada's modernized Industrial and Technological Benefits Policy, which the government said is intended to generate long term economic benefits for Canadians.

TKMS Response

TKMS said the CPSP represents the largest single order in the company's history and would increase its current order backlog by more than 50%, with the first submarine delivered by 2033.

TKMS CEO Oliver Burkhard said the company is ready to work with the Government of Canada and its German and Norwegian partners to deliver the capability.

TKMS also said the partnership would support development of a sovereign Canadian sustainment enterprise, workforce development and domestic supply chain growth.

TKMS said its proposal is projected to generate CAD 167 billion in total economic activity across Canada, over CAD 86 billion in economic impact, and more than 650,000 job years over the life of the project.

Industry Partners

TKMS has named a number of Canadian and international partners as part of its 212CD program, including Kongsberg Geospatial, which has worked with TKMS since the start of the German Norwegian program, and Brantford-based Patriot Forge, which has agreed to explore manufacturing forged steel components for the CPSP. TKMS has also signed agreements with Valbruna ASW for non magnetic submarine steel, CAE for naval training and simulation cooperation, and Destiny Copper on critical minerals supply, along with technology firms including Cohere and IBM to support data and AI systems across the TKMS group, among others.

What's Next

Canada and TKMS will negotiate contract terms and program arrangements over the coming months, with a target of concluding a deal by the end of 2027.