Germany's TKMS Offers Canadian Submarine Production Partnership

German Defence Minister Boris Pistorius has revealed that ThyssenKrupp Marine Systems (TKMS), one of two finalists for Canada's submarine contract, could establish production facilities in Canada to build submarines or components locally. This announcement comes during high-level defense discussions in Ottawa between Canadian, German, and Norwegian officials, highlighting the strategic importance of Canada's submarine modernization program.

Canada's Submarine Procurement Program

Canada is currently evaluating two primary contenders for its submarine replacement program: South Korea's Hanwha with its KSS-III submarines and Germany's TKMS with its Type 212CD models. The Type 212CD submarines are already under construction for both Germany and Norway, providing proven technology and established production processes. Canada's current fleet of four submarines faces retirement by 2035, creating urgency for the government to secure replacement vessels through this major procurement initiative.

German Proposal for Canadian Production

During media discussions in Ottawa, Minister Pistorius emphasized TKMS's flexibility in meeting Canadian requirements. The German defense company could either construct complete submarines in Canada or manufacture specific components domestically, depending on Canada's preferences and industrial capacity. This approach aligns with Canada's broader defense industrial strategy, which often includes domestic production requirements for major military acquisitions.

Strategic Timing and Competition

The German proposal comes at a critical moment, just days before Prime Minister Mark Carney's scheduled visit to Asia, where he is expected to tour Hanwha's shipyard facilities in South Korea. This timing underscores the competitive nature of the submarine procurement process and the importance both bidders place on securing the Canadian contract. The parallel development of relationships with both potential suppliers demonstrates Canada's strategic approach to defense procurement.

Broader Defense Cooperation

The submarine discussions occur within the context of broader defense cooperation between Canada and Germany. As reported by The Canadian Press, the countries recently signed a critical minerals agreement in August 2025, highlighting the expanding defense and industrial partnership between the nations. This growing relationship could influence the final submarine procurement decision, particularly given the potential for technology transfer and industrial benefits.