Key facts
- Prime Minister Mark Carney will announce the winner of Canada's submarine contract on Monday.
- The contract is for the construction of 12 submarines.
- The main contenders are Germany's Thyssenkrupp Marine Systems and South Korea's Hanwha Ocean.
- The announcement precedes Carney's departure for a NATO summit in Turkey.
- Both companies have presented significant economic benefit proposals to Canada.
Prime Minister Mark Carney is set to announce the winner of Canada's submarine contract on Monday, a significant step in modernizing the Royal Canadian Navy. The decision will determine whether Germany's Thyssenkrupp Marine Systems (TKMS) or South Korea's Hanwha Ocean secures the bid to build 12 conventionally powered submarines.
The announcement comes before Carney's departure for a NATO leaders' summit in Turkey, as allies boost defense spending. Canada aims to spend 5% of its GDP on defense by 2035. The contract is expected to be worth tens of billions of dollars.
Both TKMS and Hanwha have presented substantial economic benefit proposals. Hanwha has pledged over $70 billion in trade and investment, potentially creating more than 25,000 jobs annually. TKMS has countered with a proposal promising $86 billion in economic benefits and over 650,000 job-years of employment.
Canada's current fleet of four Victoria class submarines is barely operational. The acquisition of 12 new submarines is intended to enhance Canada's underwater patrol capability, particularly in the Arctic, Pacific, and Atlantic regions.