Canada selects TKMS for submarine fleet
Analysis based on 54 articles · First reported Jul 06, 2026 · Last updated Jul 08, 2026
The selection of TKMS boosts the German defense industry and signals Canada's deepening defense ties with Europe, potentially increasing NATO's undersea capabilities. TKMS shares rose 11% on the announcement, while Hanwha Ocean may face a setback in international defense markets.
Canada has selected Germany's ThyssenKrupp — TKMS (TKMS) as the preferred supplier to build up to 12 new submarines for the Royal Canadian Legion, replacing the aging Victoria-class fleet. Prime Minister Mark Carney announced the decision on July 7, 2026, in Halifax, ahead of a NATO summit in Turkey. The contract, valued at an estimated C$20-30 billion for acquisition and up to C$100 billion over the lifecycle, is the largest defense procurement in Canadian history. TKMS, partnered with Norway, beat out South Korea's Hanwha Ocean. The decision strengthens ties with European NATO allies and supports Canada's commitment to increase defense spending to 5% of GDP by 2035. Delivery of the first submarines is expected around 2034-2035. The move was welcomed by German Chancellor Friedrich Merz and Norwegian Prime Minister Jonas Gahr Støre. TKMS pledged C$160 billion in economic activity and over 650,000 jobs in Canada. The selection reflects Canada's pivot toward European security and NATO interoperability, though it may strain relations with South Korea.
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