Canada shortlists German, South Korean yards for massive sub program

Canada shortlists German, South Korean yards for massive sub program

VICTORIA, British Columbia — Canadian Prime Minister Mark Carney will head to South Korea in late October to visit Hanwha Ocean’s facilities as the competition to provide Canada with a new submarine fleet has narrowed to two potential bidders.

Carney announced in Berlin on Aug. 26 that Canada had shortlisted thyssenKrupp Marine Systems and Hanwha Ocean as the two firms that are being considered for Canada’s program to acquire up to 12 conventionally-powered submarines.

Carney then travelled the same day to Kiel in northern Germany to tour the thyssenKrupp facilities. He said he would also travel to Hanwha Ocean’s facilities in late October. Carney is expected to be in South Korea at that time for the APEC South Korea 2025 Summit which runs Oct. 31 to Nov. 1.

Carney announced the shortlisting of the two firms during a news conference in Berlin with German Chancellor Friedrich Merz. Carney said the new Canadian submarines will be expected to operate in the Arctic under ice for weeks at a time as well as in demanding conditions on Canada’s other coasts.

“So that’s how the field narrows quite quickly,” he told reporters. “So it’s a testament to both of these companies, both of these consortiums, that they qualify.”

In a separate news release issued Aug. 26, Public Services and Procurement Canada noted that “Canada will conduct in-depth engagements with the two qualified suppliers to continue to advance the procurement process. Canada intends to leverage work on the submarines to generate economic benefits for Canada’s marine and defence industry throughout the fleet’s operational life.”

The Canadian government formally began its efforts to acquire a fleet of new submarines when it requested information from various firms in September 2024. The request to industry asked for information on the production cost for acquiring eight or 12 submarines, among other details. No information on the project budget has been released yet but defense and industry analysts have noted the cost would be at least $60 billion Canadian dollars, $44 billion U.S.

The current fleet of Victoria-class submarines operated by the Royal Canadian Navy will be decommissioned in the mid-2030s, the Canadian government has noted. To avoid any gap in Canadian submarine capabilities, Canada anticipates a contract award by 2028 with the delivery of the first replacement submarine no later than 2035, according to Canadian government officials.

ThyssenKrupp Marine Systems is looking to offer Canada the Type 212CD submarine which is being developed jointly with Norway.

Hanwha Ocean is proposing its KSS-III, which is already in service with South Korea’s navy.

Both companies have promised to work closely with Canadian firms.

TKMS CEO Oliver Burkhard noted that the company’s submarines are well suited for Arctic and under-ice operations, the Canadian Press news service reported Aug. 26.

In an Aug. 27 statement, Hanwha noted it can deliver four KSS-III submarines before 2035 if a contract is awarded next year. The additional eight submarines would be delivered at a rate of one per year, meaning the entire fleet of 12 submarines could be delivered to Canada by 2043, the company added.

Royal Canadian Navy Commodore Jason Armstrong, Director General of Naval Force Development, told industry officials April 10, 2025 that the first of the new class of submarines will be delivered in 2035 with initial operating capability by 2037.

The submarines are to be capable of deploying undetected to a range of 3,500 nautical miles and patrol covertly for 21 days, according to the Armstrong’s briefing document which was provided to Defense News by Canada’s Department of National Defence.

The new submarines will be armed with heavy torpedoes, anti-ship cruise missiles and precision-strike capabilities, the briefing noted.

The four Victoria-class boats, originally known as the Upholder-class, were purchased second-hand from the Royal Navy. The first three Victoria-class submarines were accepted into Royal Canadian Navy service between 2000 and 2003. The fourth submarine suffered a fire in transit to Canada in 2004, which delayed its acceptance into RCN service until 2015.

The submarines are currently undergoing various improvements and upgrades to keep them operating until the mid to late 2030s.

David Pugliese is the Canada correspondent for Defense News.

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