“Canada Considers Strategic Partnership for Submarine Procurement”

Date:

During his persuasive presentation last spring to advocate for Canada’s acquisition of submarines, Oliver Burkhard, the CEO of ThyssenKrupp Marine Systems (TKMS) from Germany, emphasized the concept of a “strategic partnership” repeatedly.

Burkhard expressed that Canada would become part of “a family.”

The outcome of this approach and its reception by Prime Minister Mark Carney and his cabinet members may become clearer soon.

Canada recently announced the shortlisting of two contenders, TKMS and Hanwha Ocean Ltd. from South Korea, for the construction of the new navy submarines.

Prime Minister Carney engaged in discussions with German Chancellor Friedrich Merz and participated in a business roundtable aimed at enhancing Canada’s trade diversity and establishing a partnership for critical minerals.

WATCH | Carney discusses government plans for submarine procurement:

Carney asked how government intends to proceed with submarine procurement

August 26

Duration 2:29

Prime Minister Mark Carney, during his visit to Germany with Chancellor Friedrich Merz, addressed the government’s approach to purchasing new submarines. Carney assured that the process would be transparent and fair, without giving specific details.

This partnership aims to strengthen cooperation between the two countries to secure critical minerals supply chains and co-fund projects benefiting various industries, as per the Prime Minister’s Office.

However, defense and security matters are prominently featured on Carney’s agenda during his European trip this week.

The prime minister visited the TKMS shipyard, observing construction progress on one submarine and maintenance work on an older model being considered for purchase by Canada.

After touring the submarine, Carney shared a light moment with a naval officer, jokingly expressing his interest in joining.

Accompanying him were Industry Minister Mélanie Joly, Defence Minister David McGuinty, along with top security officials and advisors.

A group of people walking from an airplane on a red carpet.
Carney arrived in Berlin on Monday and engaged in meetings with German political and business leaders on Tuesday. (Christinne Muschi/The Canadian Press)

Carney emphasized his commitment to a transparent and fair competition process and mentioned plans to visit the Hanwha shipyard in South Korea later this year.

According to federal officials speaking anonymously, the government is deliberating between soliciting full proposals or proceeding directly to contract negotiations with a preferred bidder.

While Hanwha submitted a detailed bid last March, TKMS, in their conversation with CBC News, indicated they had responded comprehensively to the government’s information request earlier.

Although specific financial details were not disclosed by Burkhard, he hinted at a potentially interesting development.

Canada has never had the infrastructure to domestically build submarines and has always sourced them internationally. The

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