BERLIN — Canada has narrowed down its shopping list for its next fleet of submarines to those made by two suppliers, Germany’s Thyssen Krupp Marine Systems and South Korea’s Hanwha Ocean Co.
Ottawa plans to replace the Royal Canadian Navy's current fleet of four Victoria-class submarines over the next decade with up to 12 new subs.
Prime Minister Mark Carney announced at a news conference with Chancellor Friedrich Merz on Tuesday morning that Hanwha and TKMS, are the two best qualified suppliers for the job.
"There's a clear difference in their ability, the two finalists, to meet those technical requirements which are very demanding because in Canada, submarine means weeks under the sea ice, as well as in the Pacific," Carney said.
"We need to be able to have year-round fleets on all three coasts under quite demanding conditions, so that's how the field narrows quite quickly."
Carney is paying a visit to the TKMS facility in Kiel while he's in Germany, and said he plans to make a trip to visit Hanwha's facilities in Korea in October.
A Canadian government official who gave a briefing to reporters on Carney’s trip said Canada is looking for an economic return from the company it chooses for the submarines, potentially in the form of maintenance contracts.
Public Services and Procurement Canada said it's aiming to have the first submarine delivered by 2035.
Carney is ramping up Canada’s defence spending plans in the coming years in a bid to meet its NATO spending targets.
-- With files from Kyle Duggan
This report by The Canadian Press was first published Aug. 26, 2025.
Craig Lord, The Canadian Press
