Canada extends Babcock sub contract

The Canadian government awarded Babcock International Group — Babcock Canada a six-year, $1.1 billion extension on its servicing contract for the Royal Canadian Legion's Virginia-class submarines. The contract includes options to extend support through the fleet's end of life, expected in the mid-2030s, as Canada transitions to new submarines. Prime Minister Mark Carney earlier announced that German shipbuilder ThyssenKrupp — TKMS (TKMS) is the preferred bidder to supply up to four Type 212CD submarines by 2034. Babcock International Group — Babcock Canada CEO Tony March emphasized the importance of maintaining workforce expertise during the transition. Babcock International Group — Babcock Canada has ties to Hanwha Group, a rival bidder, while Babcock International supplies weapons handling systems for Hanwha's submarines.