Canada picks Germany’s TKMS to build 12 submarines, Globe and Mail reports
Canada's Submarine Procurement and Defense Strategy
Selection of TKMS for Submarine Construction
July 6 (Reuters) - Canada has picked Germany’s TKMS to build 12 submarines for Canada's navy, The Globe and Mail reported on Monday.
Announcement Timing and Political Context
The announcement will be made before Canadian Prime Minister Mark Carney heads to a NATO leaders’ summit scheduled for Tuesday and Wednesday in Turkey, the report said, citing sources.
The Prime Minister's Office did not immediately respond to a request for comment. Carney was due to make an announcement related to security in Halifax on Monday afternoon.
Details of the TKMS Submarine Offer
TKMS, majority-owned by German conglomerate Thyssenkrupp, is offering its 212CD class submarine model in the tender, which it is also supplying to Norway's navy under a joint program.
Market Reaction
Shares in TKMS rose as much as 12.9% on the news, hitting their highest level in nearly four months.
Canada's Defense Spending and NATO Commitments
Canada, under pressure from the United States to increase defense spending, has said it hit NATO's military spending target of 2% of GDP earlier than originally planned. NATO leaders have agreed to spend 5% of GDP on defense and security-related investments by 2035.
Other Contenders and Geopolitical Implications
South Korean Bid
South Korean shipbuilder Hanwha Ocean 042660.KS, which was also under consideration for the contract, did not immediately respond to a request for comment.
Strategic Choices for Canada
Going with the German submarine contract would mark a further deepening of ties between Europe and Canada ahead of the NATO summit, while going with South Korea would reflect Carney's goal to increase trade and business ties with Asia.
Technical Features of the 212CD Submarine
Design and Capabilities
With its diamond shape, length of around 74 metres (243 feet) and non-magnetic steel, TKMS hopes the 212CD will become the new NATO standard.
Reporting and Editorial Credits
(Reporting by Caroline Stauffer, Katharine Jackson, Christoph Steitz and David Ljunggren; Writing by Caroline Stauffer; Editing by Howard Goller)
