The Prime Minister of Canada, Mark Carney, announced the winner of the contract for the replacement of the submarine fleet: TKMS AG will deliver 12 advanced submarines.

Mark Carney announced on Monday that ThyssenKrupp Marine Systems (TKMS) has won the government contract for replacing the old submarine fleet, in a tight competition with Hanwha Ocean.

TKMS, the largest producer of non-nuclear submarines, will deliver 12 submarines of the 212CD model, which meet the military needs of Canada. This is the first order for new submarines for the Royal Canadian Navy, which currently operates four Victoria-class submarines, purchased second-hand in 1998. The new submarines will strengthen Canada's presence in the Arctic, having stealth capabilities and surveillance missions on Arctic routes. The contract, estimated at over 12 billion USD, also includes maintenance for approximately 50 years, which could bring the total cost to over 70 billion USD.

Negotiations to finalize the contract will likely take several years.

Last year, Carney visited both the TKMS factory in Germany and the Hanwha factory in South Korea, as part of the selection process.