Canada has selected Germany’s Thyssenkrupp Marine Systems as preferred supplier for up to 12 new Royal Canadian Navy submarines, putting its Type 212CD design ahead of South Korea’s Hanwha Ocean in the country’s largest defence procurement, according to the Prime Minister of Canada’s July 6 statement.
Ottawa will now enter negotiations with TKMS for the Canadian Patrol Submarine Project, which is intended to replace the ageing Victoria-class fleet. The existing submarines are expected to remain in service into the mid-to-late 2030s, while the first four new submarines are expected in 2034.
Canada plans to conclude contracting no later than the end of 2027. Hanwha Ocean remains the reserve option: if talks with TKMS fail, Canada may designate the South Korean shipbuilder as preferred supplier and begin negotiations with it.
TKMS said the potential Canadian order could cover 12 Type 212CD submarines and increase its order backlog by more than 50% once a firm contract is agreed. The German company said its final proposal would generate CAD 167bn ($117.5bn) in total economic activity across Canada, CAD 86bn ($60.5bn) in economic impact and more than 650,000 job-years over the life of the project.
The procurement process included a request for information from September 2024 to February 2025, the identification of two qualified suppliers in August 2025, proposal instructions in November 2025, submissions in March 2026 and a bid clarification process that ended on April 29.
Thyssenkrupp Marine Systems is a Kiel-based German naval shipbuilder focused on conventional submarines, surface vessels, maritime electronics and lifecycle services. Its order backlog stood at €20.6bn ($23.5bn) as of March 31, 2026.
Hanwha Ocean is a South Korean shipbuilding company that remained Canada’s alternative negotiating counterparty after the preferred-supplier decision.