Germany on Monday signaled strong confidence that Ottawa will select a proposal led by ThyssenKrupp Marine Systems (TKMS) to build a new Canadian submarine fleet, according to comments made to reporters in Berlin.
A German official said the government views the TKMS-led offer as effectively unbeatable and expressed an expectation that Canada will make its decision soon. The official indicated that the NATO summit in Ankara, which begins Tuesday, would be an appropriate forum for Canada to announce a selection.
TKMS heads a German-Norwegian consortium that is competing with two South Korean bidders - Hanwha Ocean Co. and HD Hyundai Heavy Industries Co. - for the multiyear contract. The procurement deal covers the construction of up to 12 conventionally powered submarines for the Royal Canadian Navy.
According to the officials' comments, the package could exceed C$100 billion - roughly $70 billion - when support and maintenance over the program's life are included. If awarded as projected, the contract would rank among the largest military purchases in Canada's history.
The German statement framed the TKMS bid as a leading contender and emphasized Berlin's confidence in the offer's competitiveness. Beyond the lead bidder and its immediate competitors, the contract's scale encompasses long-term sustainment obligations, as reflected in the inclusion of support and maintenance costs in the overall estimate.
Key elements noted by the German official include the number of submarines covered - up to 12 - and the conventional propulsion specified for the vessels. While the German government expressed optimism that Ottawa will soon move to select TKMS's offer, no formal award had been announced at the time of the Berlin remarks.
The competition remains active, with the German-Norwegian consortium, Hanwha Ocean Co., and HD Hyundai Heavy Industries Co. all in contention. The timing and final outcome of Canada's procurement decision were not confirmed by the German official; the NATO summit was mentioned only as a possible setting for an announcement.
Overview - Germany expects Canada to choose the TKMS-led bid to build up to 12 conventionally powered submarines, a program that could cost more than C$100 billion including lifecycle support.