Canada is poised to select a preferred bidder for a fleet of 12 submarines on Monday, a decision that represents one of the nation's most significant military procurements.
German firm ThyssenKrupp Marine Systems and South Korea's Hanwha Ocean are the two contenders vying for the multibillion-dollar contract. The announcement is anticipated as Prime Minister Mark Carney prepares to attend the NATO summit in Turkey, a gathering focused on increasing defense spending among allied nations.
Carney is scheduled to visit a Canadian Armed Forces base in Nova Scotia on Monday, where he is expected to outline "new measures to make Canada more secure, resilient, and prosperous." While a spokesperson for Carney declined to confirm the submarine announcement for Monday, the Prime Minister indicated in May that a decision would be forthcoming within weeks.
Canada's current submarine fleet consists of four Victoria-class vessels, which have been experiencing significant operational limitations.
ThyssenKrupp Marine Systems, a German-Norwegian consortium, has promoted its bid by emphasizing its contribution to strengthening NATO's submarine capabilities, noting its history of supplying conventional submarines to the alliance. Hanwha Ocean has engaged in an extensive advertising campaign and has highlighted the potential economic benefits for Canada, including job creation and investment.
Last month, Hanwha showcased its KSS-III diesel-electric submarine in British Columbia following its participation in the South Korean navy's first trans-Pacific voyage. Both bidding companies have stated that their proposals would generate domestic jobs and investment.
Prime Minister Carney's government has committed to meeting NATO's defense spending targets, aiming to allocate 5% of Canada's gross domestic product to defense by 2035, after having met the alliance's previous 2% benchmark this year.