Prime Minister Mark Carney is expected to announce the winning bidder for Canada’s next-generation submarine program on Monday, marking one of the largest military procurement projects in the country’s history.
The project involves the acquisition of 12 conventionally powered submarines to replace the Royal Canadian Navy’s aging Victoria-class fleet. The two finalists competing for the multibillion-dollar contract are Germany’s ThyssenKrupp Marine Systems (TKMS) and South Korea’s Hanwha Ocean.
The announcement is expected ahead of Carney’s departure for the NATO summit in Turkey, where defence spending and allied security cooperation will be key topics. Canada recently met NATO’s target of spending 2% of GDP on defence and has pledged to increase that figure to 5% by 2035.
The new submarine fleet is intended to strengthen Canada’s naval capabilities in the Arctic, Atlantic, and Pacific regions while enhancing the country’s contribution to NATO operations. Officials say the program will also improve Canada’s ability to monitor and protect its maritime sovereignty in an increasingly challenging global security environment.
Both bidders have promised significant investments in Canada, including job creation, industrial partnerships, and long-term maintenance support. The submarine program is expected to shape Canada’s naval defence strategy for decades and is considered one of the most important defence investments in the country’s modern history.