Canada picks German firm TKMS for new submarine fleet, in one of its largest-ever procurements

Canada picks German firm TKMS for new submarine fleet, in one of its largest-ever procurementsImage source, Getty ImagesImage caption, Carney is boosting Canada's military spending and seeking stronger ties with EuropeByMadeline HalpertPublished15 minutes agoThe Canadian government has chosen a German defence company to build its navy's new submarine fleet, in one of Canada's largest ever military procurement deals. Prime Minister Mark Carney announced on Monday that the government had chosen the company TKMS for the multi-billion dollar, 12-vessel contract.The announcement comes just before Carney leaves for a Nato summit in Turkey, where members are expect to face pressure to show they are boosting defence investment. Since taking office, Carney has bumped Canada's defence spending to 2% of gross domestic product (GDP), and has committed to reaching 5% by 2035. In Halifax, Novia Scotia, on Monday, Carney said the government would enter into negotiations with TKMS to sign a contract, which could take several months."This project is about much more than acquiring submarines," Carney said. "It builds Canadian industrial capacity."TKMS - the world's largest non-nuclear submarine manufacturer - was competing with South Korea's Hanwha Ocean shipbuilding company for the submarine bid. The latest fleet of submarines is a part of Carney's effort to increase military spending and intended to bolster the country's maritime sovereignty, especially in the Arctic. US President Donald Trump has put pressure on 32 members of Nato's military pact to increase defence spending. Canada announced in July 2024 that it was seeking a contractor to build the new fleet of submarines, with Carney saying he would decide the winner to replace the country's aging Victoria-class vessels, bought in 1998, by this June. The submarine contract gives Carney "significant credibility" in his efforts to prove he is bumping...