Canada to Choose Between German and South Korean Submarine Offers Worth Billions

Canada is expected to announce its decision today, Monday, on whether to award the contract for building a fleet of 12 submarines to either German or South Korean companies, in one of the largest military purchases in the country's history.

According to the Associated Press, the German-Norwegian consortium ThyssenKrupp Marine Systems and South Korea's Hanwha Ocean are competing for the contract to build 12 conventionally powered submarines valued at tens of billions of dollars.

The announcement is anticipated before Prime Minister Mark Carney departs to attend the NATO summit scheduled in Turkey, at a time when NATO allies are increasing their defense spending.

On Monday, Carney is scheduled to visit a Canadian Armed Forces base in Nova Scotia, located on the Atlantic coast, ahead of unveiling "new measures to make Canada safer, more resilient, and prosperous."

A spokesperson for Carney declined to confirm whether the submarine announcement would be made today; however, Carney stated in May that the decision would be announced within weeks.

Canada's current submarine fleet, consisting of four Victoria-class submarines, is barely operational.

The German-Norwegian consortium ThyssenKrupp Marine Systems has presented its submarines as a means to strengthen NATO, noting that it has supplied a significant portion of the alliance’s conventional submarine fleet.

Meanwhile, South Korea's Hanwha Ocean has launched an intensive advertising campaign emphasizing the economic benefits for Canada.

The Carney government has committed to meeting NATO’s higher defense spending targets, pledging to allocate 5% of Canada’s GDP to defense by 2035, after reaching the alliance’s previous 2% benchmark this year.