Canada to buy 12 hi-tech German submarines after bidding war
4 hours ago
- #defence-contracts
- #submarines
- #NATO-ties
- Canada selects German consortium ThyssenKrupp Marine Systems (TKMS) to build 12 cutting-edge submarines in a major defence contract.
- The contract, worth over US$12 billion for submarines plus maintenance, could total over US$70 billion, deepening NATO ties.
- The new TKMS submarines will enhance Canada's Arctic presence with stealth technology and surveillance capabilities in the Northwest Passage.
- Canada's current fleet consists of four secondhand Victoria-class submarines from 1998, with three undergoing maintenance.
- South Korean bidder Hanwha Ocean proposed larger submarines with weapon deployment advantages and promised economic benefits like using Canadian steel.
- Canada aims to increase defence spending to 5% of GDP by 2035 and reduce reliance on the U.S., considering European contractors.
- Canada is also weighing the purchase of 72 Saab Gripen warplanes and has committed to 18 F-35 jets, with potential for job creation.