Canada picks German company TKMS to build new fleet of submarines

Key Points:

• Canada has selected German defence company TKMS to build its new 12-vessel submarine fleet in the largest military procurement deal in the country's history, announced by Prime Minister Mark Carney.
• The contract aims to replace aging Victoria-class submarines and enhance Canada's maritime sovereignty, particularly in the Arctic amid growing security concerns linked to climate change.
• The deal is part of Carney's broader effort to increase defence spending to 2% of GDP, with a target of 5% by 2035, and to strengthen strategic partnerships with Europe amid trade tensions with the US.
• TKMS's bid, in partnership with Norway, promises a low-risk, NATO-aligned solution with shared maintenance, training, and operations, enabling three submarines to be operational simultaneously, a significant improvement over current capabilities.
• The Canadian government views this procurement as not only a military upgrade but also a boost to Canadian industrial capacity, with contract negotiations expected to take several months.