Canada selected German shipbuilder ThyssenKrupp Marine Systems (TKMS) on Monday to build a new fleet of submarines for the Royal Canadian Navy.

This procurement represents the largest defence purchase in the history of the country. The deal aims to modernize aging maritime capabilities and ensure Canada can meet its security strategy and NATO commitments.

The agreement includes the purchase of up to 12 submarines [1]. This multi-billion-dollar investment is designed to replace the current fleet with modern technology capable of long-range operations, and enhanced surveillance.

Officials said the contract will provide significant industrial spinoffs for Canada. Much of the expected economic benefit is slated for southern Vancouver Island, where local industry will support the integration and maintenance of the new vessels.

The selection of TKMS follows a competitive process involving other international bidders. By choosing the German firm, Canada secures a partnership with one of the world's leading naval architects to maintain a strategic presence in both Atlantic and Pacific waters.

The procurement process focuses on strengthening maritime defence to counter evolving global threats. The new fleet will allow the Royal Canadian Navy to conduct more complex missions, and improve interoperability with allied forces during joint exercises.

“The largest defence purchase in Canadian history.”

This procurement signals a shift toward heavier investment in undersea warfare capabilities to secure Arctic and coastal waters. By partnering with Germany, Canada is not only upgrading its hardware but also attempting to stimulate high-tech manufacturing and shipbuilding jobs in British Columbia.