HALIFAX (VINnews) – Canadian Prime Minister Mark Carney announced Monday that Germany’s thyssenkrupp Marine Systems (TKMS) has been chosen as the preferred bidder over South Korea’s Hanwha Ocean for Canada’s largest-ever military procurement, a project to acquire up to 12 advanced diesel-powered submarines at a potential cost of up to $100 billion.

The decision advances the Canadian Patrol Submarine Project, under which Canada will purchase Type 212CD submarines in a joint effort with Norway. Carney made the announcement at a Canadian Armed Forces base in Halifax ahead of his departure for the NATO leaders’ summit in Ankara, Turkey.

“TKMS had agreed to shift existing production slots for Norwegian and German orders to prioritize Canada,” Carney said, enabling the country to field four of the new submarines by 2034.

The Type 212CD submarines feature air-independent propulsion technology, offering enhanced stealth and endurance suited to Canada’s vast coastlines and Arctic operations. The procurement aims to replace the Royal Canadian Navy’s aging Victoria-class fleet, of which only one vessel is currently operational.

The competition between TKMS and Hanwha Ocean was closely watched for its economic implications across Canada. Officials emphasized industrial benefits, technology transfer and long-term maintenance support as key factors in the selection.

Negotiations will continue to finalize the contract details following the preferred bidder designation. The project represents a significant boost to Canada’s defense capabilities amid heightened global security concerns and NATO commitments.6aef0e

This story will be updated as more details become available.